Dive Brief:
- Continuing its focus on sustainability, Ulta Beauty is introducing The Beauty Dropoff, a network of recycling bins at Ulta stores where beauty consumers can recycle their empty cosmetic containers, according to details emailed to Retail Dive Monday.
- The move, which puts recycling bins at all of Ulta’s more than 1,350 stores, is an expansion of the retailer’s partnership with Pact Collective. The effort is “the largest beauty packaging collection program by door count in the U.S.,” according to the companies.
- Ulta will require customers to clean, unbag and empty all recyclables. Items smaller than a fist can be discarded via The Beauty Dropoff, while larger items can often be recycled curbside.
Dive Insight:
The Beauty Dropoff builds upon Ulta’s previous sustainability efforts. In 2020, the company launched Conscious Beauty, a clean beauty effort that certifies brands under five criteria: clean ingredients, vegan, cruelty free, sustainable packaging and positive impact. At the time, the retailer also announced a circular shopping partnership with Loop.
Pact Collective, Ulta’s partner for this recycling initiative, has more than 150 member companies, including beauty brands and retailers like Fenty Beauty, L'Oréal and Sephora, according to its website. The organization aims to address the industry’s packaging problem. Beauty conglomerates L'Oréal and Estée Lauder have also made their own packaging goals, including adding more sustainable materials to packaging and reducing the weight of packaging components.
As it pursues its sustainability aspirations, Ulta has also grown its business in the second half of 2023. The company reported a 6.4% bump in Q3 net sales to $2.5 billion. It also saw its net income rise 10% to $249 million.
That growth continued in the following quarter. Ulta’s Q4 sales rose 10.2% year-over-year, and its sales for the year grew 9.8% to $11.2 billion. The company also announced plans to enter Mexico next year. The move will allow the company to capitalize on the country’s sizable beauty market, Ulta CEO Dave Kimbell said during an earnings call with analysts this month.
