FONTANA Limited is accelerating its expansion into higher-margin beauty retail with the opening of its third Orá by Fontana location at Sovereign Centre.

The company did not disclose the cost of building out the new location or expected returns, but the roll-out signals continued investment in a segment management has increasingly positioned as a growth driver within its hybrid retail model.

Chief Executive Officer Anne Chang said the Orá concept reflects changing consumer behaviour and the company’s effort to enhance its retail mix.

“The launch of Orá by Fontana represents the natural evolution of a beauty concept that continues to resonate with our customers,” Chang said, noting that the Sovereign Centre store expands the model into one of Kingston’s busiest commercial corridors.

Orá is Fontana’s dedicated premium beauty format — a specialised retail concept created to house prestige cosmetics, skincare, and fragrance brands in a stand-alone environment distinct from the traditional pharmacy floor. The initiative forms part of a broader repositioning of the company from a pure pharmacy operator to a diversified retail player spanning health care, beauty, and lifestyle categories.

According to the company’s financial disclosures, the launch and expansion of the Orá concept has been contributing to revenue growth alongside the integration of newly acquired locations. Revenue for the first quarter ended September 2025 rose 20.6 per cent to $2.5 billion, supported in part by “positive momentum from our new, high-concept Ora Beauty stores”.

Despite the strong top-line growth, operating profit declined slightly to $100 million as the company absorbed ramp-up costs linked to new stores and expansion activities, highlighting the near-term investment phase tied to its evolving retail strategy.

Fontana’s move deeper into prestige beauty reflects broader retail trends both locally and globally, where skincare, fragrance, and wellness products have become increasingly important revenue drivers for pharmacy and lifestyle chains. Beauty categories typically carry stronger margins than prescription pharmaceuticals and everyday retail items, making them attractive for retailers seeking to expand profitability.

The Orá portfolio features a curated mix of international prestige brands including Fenty Beauty, Lancôme, Giorgio Armani, Valentino, Prada, Yves Saint Laurent, and Versace, positioning the concept within the premium segment rather than mass-market beauty retail.

The third location joins earlier Orá stores at Waterloo in Kingston and Fairview in Montego Bay, marking a measured roll-out following the concept’s debut in 2025.

— Karena Bennett