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Ulta Beauty Essay

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Introduction
Sephora and Ulta are both beauty specialist stores. Both stores have grown tremendously in the United States beauty market. The market for skincare and cosmetics retailer is highly competitive with the participation of lower-price mass merchandisers such as Walmart and Target, and the rise of online retailers like Amazon. However, the specialist store overtakes drugstores to become the second-biggest channel, behind supermarket (Exhibit). Their total market share grows from 12% to 14.3% between 2011 and 2016. According to Prosper survey, the top three reasons
Ulta Beauty, Inc., is founded in 1990 and now is the largest beauty retailer in the United States. As of February 3, 2018, Ulta Beauty has 1,074 retail stores across 48 states and a website, in which more than 20,000 products are offered. The products are from approximately 500 well-established and emerging beauty brands across all categories and price points, including Ulta Beauty’s own private label that is sold at a lower price point. This is attributed to the company’s slogan as its value proposition All Things Beauty, All in One Place. The company operates through three segments: retail stores, salon services and e-commerce where all three has a …show more content…

The loyalty programs play a vital role and it is an extremely valuable asset for both Sephora and Ulta. According to Ulta’s 2016 annual report, sales from Ultamate Rewards members represent more than 90% of its revenue. As for Sephora, according to Bridget Dolan, VP of Sephora’s Interactive Media, 80% of its transactions were made through the Beauty Insider program (Coresight Research). The comparison of the main features if the two programs are outlined in Figure 1. The similarities for both programs are free enrolment, customers can earn one point per dollar spent (basic plan) and receive a free birthday gift each

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