Ulta Beauty's online business in the United States continues to be strong, with sales increasing by 70%

Digital sales at Ulta Beauty , a U.S. cosmetics retailer, nearly doubled year-over-year in fiscal 2020. The company’s carefully planned initiatives to boost online promotions and customer engagement have been supporting digital sales growth.

Also of note, Ulta Beauty's e-commerce sales grew 70 % in the fourth quarter of fiscal 2020 , with continued strength in the buy online, pick up in store program contributing 15% to the company's e-commerce sales.

As consumers become increasingly enthusiastic about online sales, management is gradually expanding the capacity of its fulfillment centers, expanding shipments from store capabilities, and curbside pickup. In fact, the company's investments in expanding fulfillment centers have helped boost Ulta Beauty's e-commerce shipping capabilities and have the potential to increase its delivery speeds.

To further strengthen its omnichannel presence, the company launched BOPIS in all stores , updated its mobile app, and introduced "Afterpay" to simplify online shopping. In addition, the company added virtual try-on capabilities and a new service booking tool on its app and ulta.com.

Beyond that, management was excited about its planned partnership with Target Corp. this year . The company said it plans to launch Ulta Beauty in nearly 100 Target stores in the fall, which will be a "store-in-a-store experience" available at select Target locations and online.

Ulta Beauty is focused on delivering exclusive beauty products through innovation. To that end, Conscious Beauty, which launched on Ulta Beauty in October 2020 , has already borne fruit. In January, the company launched its Briogeo brand for all hair types in all stores and online.

The company's skin-care products have been performing well, helped by consumers' focus on self-care, driven by social media during the pandemic , and consumers are increasingly interested in new brands, both regular brands and old brands such as CeraVe and La Roche-Posay.

Additionally, consumers ’ increasing focus on skin and hair care amidst growing at-home beauty regimen is likely to continue driving growth in this segment.

As the COVID-19 vaccine rollout continues and society gradually moves toward a new normal, Ulta Beauty management hopes that its makeup category and salon business will strengthen. In fact, management expects both revenue and comparable sales to grow in fiscal 2021. Moreover, the company's digital business and strong brand offerings will likely continue to supplement its performance in the coming periods .

Ulta Beauty

USA

E-commerce

cosmetic