AGB 2022.2 - Ulta Beauty (ULTA)

Store Efficiency Matters More Now

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Ulta Beauty

Ulta is the leading specialty retailer of beauty products in the U.S. The company sells over 25k cosmetics, fragrances, skincare and hair care products from more than 600 brands within their stores. Ulta also provides services like salon, skin, brow and makeup. With over 1,300 stores in all 50 states, the company commands over 7% of the beauty market. Ulta has over 35.9M active members in the company’s loyalty program called Ultamate Rewards. These customers have made a purchase online or in-store over the trailing 12 months.

Ulta stores are located in suburban strip mall environments that service 50k-100k nearby households. A typical store has roughly 10k sq. ft. of space, of which 950 sq. ft. is dedicated to a full-service salon. While many other retailers have increased the size of new stores in recent years, Ulta has stayed true to its size for the past decade. However, there has been an evolution insid…