2 hours Ago By Zeenia Naqvee
AN ICONIC beauty supply store is set to open more than 200 locations across the US to compete with its top rival Sephora. On Wednesday, Ulta Beauty announced its expansion plans for "2026 and beyond". The retail giant hopes net sales will grow from 4% to 6% as a result.
Ulta met its previously set goals of hitting a whopping $10 billion in revenue in 2022 - just a year after targets were put down. In recent years, Ulta has only opened a few stores, according to reports in Retail Dive. The plans will see around 200 Ulta stores open over a three year period - totaling around 66 a year.
READ MORE in money COO Kecia Steelman said the company’s latest store openings had been performing well, despite competition from beauty behemoth Sephora . Ulta also wants to grow its loyalty program to 50 million members by 2028. CEO Dave Kimbell spoke of how their target demographic had changed over the years.
He said: "Today, more men - particularly young men - are engaging in and passionate about beauty, including skin care, fragrance and in particular, the broad wellness and self-care segment. Most read in Money "And we also see meaningful growth from younger generations engaging in beauty. "To younger beauty enthusiasts, it’s not about looking a certain way or changing their appearance.
To them, beauty is fun." CFO Paula Oyibo said: "We expect 2024 and 2025 will be transitional years as we manage through near-term category dynamics, over the long-term. "We see additional opportunity to expand our leadership position, delivering both profitable growth and compelling shareholder value.
" It comes just months after the beauty supply store admitted that shopper demand was cooling. Ulta Beauty's CEO, Dave Kimbell, said consumer spending had slowed and expected the company's sales to grow by only a single digit this year. While the company was prepared for this, Kimbell noted that it is "a bit earlier and a bit bigger" than they predicted.
"We came into the year — and we talked about this on our [earnings] call a few weeks ago — expecting the category to moderate. It has [had], as I said, several years of strong growth. "We did not anticipate it would continue at the rate that it’s been growing.
" Read More on The US Sun Kimbell said a dip in consumer spending has been more significant for high-end makeup and haircare products..
