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After reporting lackluster second-quarter results in August, Ulta Beauty held its first investor day since 2021 this week and announced future growth strategies, including announcing new data partnerships and updating store expansion plans. emphasized.
The company’s marketing strategy is focused on growing its Ulta Beauty Rewards loyalty program, which currently has 44 million members, to 50 million by 2028. Its “key pillar” is personalization, such as product recommendations and replenishment reminders, with the help of new services. CMO Michel Crossan-Matos talks about the partnership with Adobe. He said the partnership will establish a “fully automated, real-time personalization engine” that requires no manual intervention and leverages data, AI and machine learning. For example, the engine uses loyalty data to determine when a shopper is on the verge of running out of concealer, while also identifying that shoppers have recently been looking for Halloween trends, social media, and Ulta Beauty. Can provide recommendations and reminders both through the app and via email.
Monica Arnaud, chief merchandising officer, said the company is “committed to reigniting growth” in the make-up category of its product assortment, which has recently been challenged. Arnauld said Ulta Beauty will focus on introducing new products and brands, which account for 20% to 30% of annual revenue, and emphasized the importance of exclusive brand partnerships. He said nearly half of the brand’s pipeline in 2025 will be dedicated to the company. The company also aims to “win” in the “growing and fragmenting” wellness category by increasing its presence in stores and online, with a broader brand assortment to house products such as supplements and personal care. .
President and COO Keshia Steelman said Ulta Beauty stores remain “the core of our model” and that the beauty retailer “doesn’t believe the market is oversaturated.” said. The company is currently testing the possibility of opening smaller stores with a more curated selection in smaller markets like Wilson, North Carolina, she said. The company previously announced it would expand into Mexico in 2025, and plans to expand to 100 stores over the next few years, he said. The company plans to operate a total of 1,800 stores in the long term, up from about 1,400 currently, with net new stores expected to reach about 200 by 2027, CFO Paula Oyibo said.
CEO Dave Kimbell said he expects 2024 and 2025 to be a “transitional period” as retailers navigate the changing dynamics of the beauty industry, but said the company has He said he believed there was a “clear strategy for this.”
“As I stand here today, I am extremely optimistic about the future of Ulta Beauty,” he said.
