What: Ulta Beauty is implementing a turnaround strategy to enhance its store experience and appeal to younger shoppers, aiming to compete with rivals like Sephora and Amazon.

Why it is important: As Ulta Beauty faces competition from Sephora's expansion and Amazon's entry into premium beauty, its focus on Gen Z and Gen Alpha shoppers is crucial for maintaining market share and driving future growth. The strategy highlights the importance of adapting to changing consumer preferences in the beauty industry.

Ulta Beauty is focusing on a strategic turnaround to address challenges posed by competitors Sephora and Amazon, particularly in attracting younger consumers like Gen Z and Gen Alpha. During its Investor Day, Ulta outlined plans to enhance its physical stores, improve customer experience, and expand its product assortment. The retailer aims to leverage its loyalty program and introduce new brands, including former Sephora exclusives like Sol de Janeiro and Fenty Beauty, to capture the attention of younger shoppers. Ulta plans to open approximately 200 new stores over the next three years, including international expansion into Mexico. Additionally, the company will invest USD 692 million in store upgrades and omnichannel shopping enhancements. Despite flat sales projections for 2024, Ulta remains committed to differentiating itself through unique in-store experiences that competitors like Amazon cannot replicate.

Ulta Beauty's strategy to reclaim market share