Dive Brief:
- Ulta this fall will introduce a new layout in select stores to “elevate key growth categories” and “unify the presentation of skincare and makeup” CEO Dave Kimbell announced on a recent call with analysts.
- The company plans to introduce a new front-of-store presentation in September that will focus on editorial storytelling around trends, events and new products, Kimbell said.
- The beauty retailer reported last week that its second-quarter net sales grew nearly 16.8% to $2.3 billion, while operating and net income both grew by nearly 18%.
Dive Insight:
Ulta is ready to make some changes inside of its stores.
While the company is already in the midst of opening stores and remodeling locations, it has “been a while since we have really made any significant changes to the store itself,” Chief Operating Officer Kecia Steelman said on a call with analysts.
Ulta’s current layout is organized by price point, with prestige makeup and skincare on one side of the store, and mass makeup and skincare on the other. Fragrance is in the middle of stores, while haircare is in the back.
The new vision involves consolidating categories.
Moving forward, the company wants to “better reflect how a guest really shops” Steelman said. That means placing mass and prestige together, with clear brand delineations.
Trends and “newness” will be at the front of shops so the company can do more editorial storytelling. A beauty bar will be central to the store.
Makeup and skincare for both mass and prestige delivered double-digit comp growth during the second quarter.
