What: After a 21% sales increase for Q1 and almost 17% for Q2, Ulta Beauty is shaking up its traditional approach to merchandising.

Why it is important: Ulta’s new store design presents brands in a category-by-category approach putting the retailer’s own point of view first and ignoring traditional price, brand, or channel segmentation.

The goal is to help customers navigate the stores and inspire them along their shopping journey by placing adjacent categories in a logical progression. The entrance takes a thematic approach over promotional or brand-centric merchandising. This is where customers discover brands which are launching, followed by skincare, then hair tools, accessories and hair care products. The store remains divided into two sides, but each side will house different categories. Instead of mass and prestige, one side will be dedicated to makeup and the other side to hair and skin. The Beauty Bar which focuses on impulse and travel- or trial-sized products will need into the check-out area which is not located at the back of the store. A Conscious Beauty section will house clean brands and a “Hero” Wall will showcase top-selling or most-loved products from different brands. The Ulta salon will be located behind the check-out.

The beauty retailer will open or remodel around 44 stores with the new format this year with 50 stores projected to open in 2023.

Ulta Beauty’s new store format