THE new CEO of Ulta Beauty has said that the company must change as she unveils her plans to revive the retailer.
Kecia Steelman was appointed as the company’s new CEO in January, as the company faces store closures and poor sales projections.
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On a recent earnings call with investors, Steelman was transparent about the “challenges” facing Ulta and the industry at large.
Steelman said that the brand needed to focus on things like brand building and personalization, as reported by Retail Brew.
The plan also involves changes like shifting chief store operations officer Amiee Bayer-Thomas to the newly created chief retail officer role.
She said: “I am aware of the challenges that we face.
“Some of them are external, while others we own…It’s clear to me that how we’ve operated must change to ensure that we capture the opportunities in front of us.”
Steelman believes that focusing on exclusive brand partnerships is another key to reinvigoration.
Ulta is currently partnered with Beyoncé’s hair care brand Cécred, for example.
In addition, the brand will focus on expand its international presence, and boost its retail media network.
Steelman also plans to open a new invitation-only e-commerce marketplace in the second half of 2025, establishing an “even broader assortment in a lower-risk way.”
Consumers will be able to earn loyalty points for their purchases, and return them at Ulta stores.
The new CEO is focused on bringing the brand up to date with the latest trends and using its social channels to stay current with consumers.
SPENDING MORE
Experts say Ulta is in a difficult position, as consumer trends shift to less but bigger purchases.
In Q4 of last year, Ulta‘s net sales dropped dropped 1.9% year-on-year $3.5 billion.
Dermatologist-approved anti-aging tips
Dermatologist Dr. Brendan Camp shared his dermatologist-approved tips with The U.S. Sun.
- Stop using tanning beds.
- Don’t use sunscreen to contour your face.
- Wear driving gloves to protect your hands from the sun. He likes Coolibar Gannett UV Gloves UPF 50+, $15.99 to $39.
- Exercise, stick to a healthy diet, and get enough sleep.
- Don’t drink excessively or smoke.
At the same time, comparable sales rose 1.5%.
This suggests that consumers spent more, but less often.
Steelman’s plans to build the brand could capitalize on this and use exclusivity to encourage consumers to spend more.
In terms of product performance, fragrance performed the best, followed by skincare.
The introduction of 66 new stores in 2024 helped Ulta boost its net sales for the whole year, and 60 more are planned to open this year.
