Ulta Beauty plans to open 200 new stores as part of a long-term strategy announced this week.
At its investors’ day Wednesday (Oct. 16), the beauty retailer said it hopes to open the new locations over the next three years, bringing its store count to more than 1,800, according to a press release.
Ulta also wants to expand its loyalty program to 50 million members by 2028 by “reaching new segments of beauty enthusiasts,” per the release.
“The strategic priorities announced today are designed to amplify our differentiated model and drive relevant innovation to meet evolving guest needs, positioning Ulta Beauty as the destination for beauty enthusiasts for a lifetime,” said Ulta Beauty CEO Dave Kimbell. “This plan will enable us to drive strong growth and capture greater market share in beauty and wellness. We have consistently delivered exceptional results over time, and we are well positioned to build on this record of profitable growth and shareholder value creation.”
During the company’s earnings call last month, Kimbell said Ulta’s shift toward social media and digital innovation was reshaping its competitive edge.
Competition is increasing in the beauty category, the CEO noted, telling analysts that, “the strength of the beauty category, combined with an attractive margin profile, has drawn substantial and diverse competition to the category. More than 80% of our stores have been impacted by one or more competitive openings in recent years, with more than half impacted by multiple competitive openings.”
Ulta’s efforts to expand its loyalty program come as brands are ramping up innovations related to their rewards offerings.
“By integrating partnerships and leveraging technology, companies are creating dynamic ecosystems that encourage frequent engagement and deeper connections with their customers,” PYMNTS reported last month.
One such partnership is the collaboration between Uber and Ascenda to allow customers on the Ascenda network to redeem their reward points for Uber credits.
In an interview with PYMNTS, Ascenda Chief Commercial Officer Josh Berwitz called the partnership a “smart distribution play for Uber” as it taps into Ascenda’s network of FinTech and banking clients, which serves over 500 million high-value customers.
Meanwhile, research from the PYMNTS Intelligence study “2024 Global Digital Shopping Index: U.S. Edition,” created in collaboration with Visa Acceptance Solutions, showed that 54% of grocery shoppers said they expect digital rewards or loyalty programs.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More