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Ulta Beauty focuses on fast delivery as some pandemic habits follow

Florida, Port St. Lucie, The Landing at Tradition, Outdoor Mall, Ulta, Cosmetology Store.

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Alta Beauty The company is chasing consumers who are accustomed to buying lip gloss without leaving home, so it will roll out same-day deliveries in some markets to speed up orders for curbside pickups, he said Tuesday. ..

On Virtual Investor Day, cosmetology retailers shared their financial outlook for the next three years. Ulta Beauty’s diluted earnings per share increased in the low double digits and capital investment increased from 4% to 5% of sales, from approximately $ 1.1 billion to $ 1.4 billion from 2022 to 2024. He said he expected it to be.

Ulta expects net sales growth to outpace other beauty and personal care industries, with growth targets of 5% to 7%, compared to 2% to 4% in other industries. Said that. On the other hand, same-store sales will increase between 3% and 5% annually. We expect to open 50 stores every year.

Stock prices on Tuesday plummeted by more than 10% with disappointing forecasts. Investors were very excited about the surge in demand as shoppers redesigned their makeup pouches and planned to go out again. As of Monday’s closing price, Ulta shares were up 42% this year.

Ulta Beauty — and the entire beauty industry — has scrambled to adapt during a pandemic. The global health crisis has disrupted the high-touch retail category, which has historically grown sales using advice from testers, perfume splits and beauty consultants. Consumers stopped buying cosmetology because they wore masks, worked from home, and skipped most social events.

For example, Ulta added a curbside pickup to its store in April 2020, shortly after the pandemic began.

Sales were down 17.9% online and in stores that were open for at least 14 months for the fiscal year ended January 30. Transactions also fell by 24.5% as shoppers visited Ulta stores and their websites less often.

Pandemic habits continue

In the most recent quarter, Ulta’s sales rebounded above pre-pandemic levels. Retailers’ same-store sales in the second quarter increased 56.3% year-on-year. Transactions increased 52.5% year-on-year. Over the two years, comparable sales increased 13.1%.

From that outlook, Ulta Beauty expects skin care sales to continue to grow, makeup sales to return to growth, and hair care product sales to accelerate. It also showed growth opportunities, including attracting more black and Hispanic customers by launching a new advertising business and expanding its lineup of textured hair products.

Ulta executives said some pandemic-related habits would be a nuisance. Consumers are embracing self-care items such as face masks, deep conditioners and home scents. They are increasing their interest in wellness-related beauty products. And they are more digitally savvy.

Chief Operating Officer Kecia Steelman said the line between face-to-face shopping and online shopping is blurring. For example, she said, customers can throw items into virtual carts based on TikTok videos. A few days later, she can visit the store and get clues from both the eye-catching display and the reviews she read on her smartphone while browsing the aisle.

Ulta’s most valuable customers

Chief Digital Officer Prama Bhatt says these customers are most valuable to retailers because they shop frequently and spend a lot of money. Customers who shop on both channels typically spend three times as much as customers who are online-only shoppers. She said they make four times more purchases a year than online-only shoppers.

That discovery influenced Ulta’s efforts. Prior to the holidays, some markets will begin same-day delivery. Ulta refused to share the price and market for the service and said details would be announced shortly.

It is also expected that you will be able to order curbside pickups within 2 hours of pressing the “Buy” button.

That competitor, LVMHOwned Sephora launched same-day delivery options last week in most major cities and suburbs. Shipping will be charged a flat rate of $ 6.95. Items must be ordered before 4pm local time for delivery on the same day.

Ulta’s Bhatt said shoppers expect faster and faster service and respond well to it.

“That improved speed really gets the product in their hands at the speed of beauty,” she said. “I think this will be an important differentiator in the future.”

Ulta Beauty focuses on fast delivery as some pandemic habits follow

https://www.cnbc.com/2021/10/19/ulta-beauty-to-focus-on-speedy-delivery-as-some-pandemic-habits-stick.html Ulta Beauty focuses on fast delivery as some pandemic habits follow

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