JCPenney has been working to use artificial intelligence to help its beauty customers. Now, the retailer claims its 2022 partnership with the beauty tech platform Revieve is paying off as the retailer continues to improve its digital shopping experience with AI- and augmented reality (AR)-powered tools.

Designed to deliver personalized skin care and makeup recommendations, the tools are driving strong results across key performance metrics, according to a new case study from Revieve.

JCPenney ranks No. 37 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American ecommerce retailers by annual online sales. There, Digital Commerce 360 categorizes JCPenney as an Apparel & Accessories retailer. Digital Commerce 360 projects JCPenney’s online sales in 2024 will reach $2.26 billion.

JCPenney web sales by year

Results so far from JCPenney’s use of AI

Two years into the collaboration, the tools have generated “substantial growth” in conversion rates, customer engagement and average order value (AOV), according to the study’s authors. Beyond the measurable gains, the technology has also strengthened JCPenney’s data collection efforts, providing deeper insights into shopper behavior and preferences, the companies stated.

“Our partnership with Revieve has been a game-changer, not only allowing us to merge the convenience of online shopping with customized beauty recommendations but also providing us with invaluable customer insights through enhanced data collection,” said Jo Osborne, senior vice president and general merchandise manager for beauty and center core at JCPenney, in a published statement.

How JCPenney is using AR and AI tools

Revieve’s case study showcases how its AI and AR tools are shaping customer behavior and contributing to JCPenney’s growth.

With the AI Skincare Advisor, customers start by uploading a selfie and answering a few questions about their skin. The tool then analyzes more than 120 skin metrics to generate personalized skincare recommendations and tips.

According to Revieve’s study, shoppers using the feature in Q1 2024 experienced a 23% higher average order value (AOV) compared to other JCPenney ecommerce users and spent 103% more time on the site.

Similarly, the AI Haircare Advisor uses a selfie to assess hair type, volume, curl pattern, and color. It provides customized product suggestions and styling advice tailored to each customer. The tool also delivered impressive results, with customers seeing a 20% AOV increase in Q1 2024 and spending twice as much time browsing the site compared to other users.

Meanwhile, Revieve’s Virtual Makeup Try-On (VTO) tool allows customers to virtually test lipsticks, eyeshadows, and foundations in real time using augmented reality. The feature has been particularly effective for both mass-market and prestige beauty brands at JCPenney.

For mass brands, conversion rates increased by 108%, with shoppers using the VTO tool spending 75% more time on the site. There was also 24% higher AOV in Q1 2024 compared to other JCPenney ecommerce users. Prestige brands saw a 65% rise in conversion rates, a 24% increase in AOV and a 69% jump in time spent browsing.

Reinventing the JCPenney brand through beauty

The adoption of digital beauty tools is part of JCPenney’s broader strategy to revitalize its beauty offerings.

Following its 2020 bankruptcy and the end of its Sephora partnership in 2022, the retailer launched JCPenney Beauty in 2021. The inclusive omnichannel initiative offers a curated selection of mass, masstige, and prestige products both online and in stores. Inclusivity is at the heart of the concept, with Thirteen Lune, a platform spotlighting brands with founders identifying as Black, Indigenous and people of color (BIPOC). Thirteen Lune served as the flagship brand at launch.

The collaboration with Revieve added a layer of advanced technology to JCPenney Beauty, offering the AI- and AR-powered personalized shopping experiences powered by Google Cloud.

“By integrating our advanced AI and AR technology, JCPenney has created a truly personalized shopping experience that connects with their customers on a deeper level,” said Sampo Parkkinen, CEO of Revieve. “It’s exciting to see how these innovations are not only enhancing customer satisfaction but also delivering measurable business growth, proving that personalization is the future of beauty retail.”

Growing demand for personalized beauty experiences

JCPenney’s focus on personalized beauty mirrors a growing trend across the retail and beauty industries, where digital tools are being used to improve the shopping experience.

In 2019, Estée Lauder launched the iMatch Virtual Shade Expert in collaboration with Perfect Corp., an AI and AR solutions provider for beauty brands. The tool leverages the YouCam Makeup virtual try-on technology to help shoppers identify their ideal foundation shade.

MAC Cosmetics, part of The Estée Lauder Companies, has used the Perfect Corp.’s shade-matching and virtual try-on technology, driving a 200% increase in customer engagement in the first month and “strong conversion,” according to the companies.

Walmart has followed suit by integrating virtual makeup try-on technology into its iOS app, also powered by Perfect Corp. The feature allows customers to virtually test a range of products, including blush, lip colors, eyeshadows and bronzers.

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