The iconic beauty supply store plans to open more than 200 locations across the United States to compete with its biggest rival, Sephora.
On Wednesday, Ulta Beauty announced expansion plans for “2026 and beyond.”
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Ulta reveals massive expansion plans across the US Credit: Getty
The retail giant expects net sales to increase from 4% to 6% as a result.
Ulta achieved its previously set goal of reaching $10 billion in sales in 2022. This comes just one year after the target was lowered.
According to a report from Retail Dive, Ulta has opened only a few stores in recent years.
The plan calls for about 200 Ulta stores to open over three years, for a total of about 66 stores per year.
COO Keshia Steelman said the company’s recent store openings have been strong despite competition from beauty giant Sephora.
Ulta also hopes to expand its loyalty program to 50 million members by 2028.
CEO Dave Kimbell talked about how the target audience has changed over the years.
He said: “More men today, especially young men, are obsessed and passionate about beauty, including skincare, fragrance and especially the broader wellness and self-care areas.”
“And we are also seeing meaningful growth in the younger generation involved in beauty.
“For young beauty enthusiasts, it’s not about looking a certain way or changing your appearance. For them, beauty is fun.”
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“In the long term, we expect 2024 and 2025 to be a transition period as we operate through short-term category dynamics,” CFO Paula Oyibo said.
“We believe we have further opportunities to deliver both profitable growth and compelling shareholder value and extend our leadership position.”
This comes just months after beauty supply stores acknowledged that shopper demand had cooled.
Ulta Beauty CEO Dave Kimbell said he expects the company’s sales to grow by only single digits this year as consumer spending has slowed.
The company had been preparing for this, but Kimbell said it was “a little faster and a little bigger” than expected.
“We went into this year, and we talked about this on the (earnings) conference call a few weeks ago, expecting this category to moderate. As I said, this area We have experienced strong growth for several years.
“We didn’t expect this growth rate to continue.”
Kimbell said the drop in consumer spending was more pronounced for high-end cosmetics and hair care products.
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Ulta plans to open more than 200 new stores across the U.S. by 2026 as part of massive expansion Credit: Getty
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