Estee Lauder's Lab Series exits Korea department stores after 35 years

Lab Series products (ELCA Korea)

US cosmetics giant Estee Lauder Companies is pulling its men’s skin care brand Lab Series from South Korea’s traditional retail channels after more than three decades, shifting its focus to online and multibrand outlets, industry sources said Thursday.

The brand is set to exit all domestic department stores this year — including Lotte Department Store Myeongdong by August — ending a run that began with its debut at the same retailer in 1991.

The move marks a retreat for a label that once defined Korea’s men’s skin care market, topping department store sales in the category as recently as 2015.

Industry officials say the shift reflects a broader pivot away from department stores, where high commission fees and weakening foot traffic have eroded profitability. Lab Series is expected to maintain its presence in Korea through duty-free shops and online channels.

“Brands are reallocating to wherever products sell better,” one industry official said. “Estee Lauder’s move fits within that trend.”

The retreat also highlights deeper challenges facing Estee Lauder’s operations in Korea, echoing the struggles of Dr.Jart+, the Korean skin care label the company acquired in full in 2019 for about $1.1 billion — its first Asia-based beauty acquisition.

Dr.Jart+ has since entered a prolonged slump, largely due to the sharp downturn in Asia’s duty-free sector and weakening demand from Chinese consumers. Revenue peaked at 634.6 billion won ($430 million) in 2019 before falling to 178.8 billion won in 2025, when the brand reported an operating loss of 23.1 billion won.

The brand exited domestic department stores in 2021 and withdrew from duty-free channels in 2024, leaving CJ OliveYoung as its only remaining offline retailer in Korea.

Estee Lauder is reportedly considering a sale of Dr.Jart+ as part of a broader portfolio overhaul. The company said last year it would work with external advisers to streamline its brand lineup and focus on businesses with the strongest return potential.