While he acknowledged that the economy is challenging, J.C. Penney's chairman and chief executive officer, Myron "Mike" Ullman, was bullish on the beauty business as he opened WWD's seventh Beauty CEO Summit at the Breakers in Palm Beach, Fla., Monday evening. Speaking of the joint effort which took Sephora store-in-stores into J.C. Penney doors nationwide, Ullman said that despite a sluggish economy, his customers are buying into the concept because "it's something new -- it is not just about price. It is offering the consumer something different."

"The partnership has been everything we expected and more," continued Ullman. "We felt Sephora would anchor us as a fun and easy place to shop.". Also, he said, the effort allows Sephora to reach customers they wouldn't otherwise reach. But he's not taking the business for granted: "We have to deliver service at or above the level that our customers would receive at a traditional Sephora store," he said.

The Summit, which continues until Wednesday, features a long list of distinguished speakers, including Virginia Drosos, president of global personal beauty, Procter & Gamble Beauty; John Replogle, president and chief executive officer of Burt's Bees Inc.; Minda Gralnek, vice president and creative director of Target Corp., and Paolo de Cesare, chairman and chief executive officer of Printemps Department Store Paris.

Click photos to view full gallery.