Pallavi Sehgal的动态

Navigating Beauty Retail | Ulta & Sephora’s Trajectory & Future Outlook This week, the beauty retail sector witnessed significant shifts with changes at Ulta Beauty and Sephora. Ulta announced the sudden retirement of CEO David Kimbell, with Kecia Steelman set to take the reins amidst a challenging period for the company. Meanwhile, Sephora continues to expand its presence within Kohl’s stores nationwide. The differing strategies of these two retail giants highlight the dynamic nature of the beauty industry, with Ulta facing strategic challenges and Sephora capitalizing on aggressive expansion. #UltaBeauty, #Sephora, #RetailIndustry, #BeautyRetail

?? Warren Buffett's Berkshire Hathaway just invested $220 M+ in Ulta Beauty. ?? ??What does this mean for the American beauty market? ?? Although Ulta has been a serious beauty contender and a strong competitor to Sephora in North America, the retailer's stock has been on the decline in recent years. ?? The declining stock seen in a post-COVID economy indicates both the state of the beauty industry and Ulta's struggle to keep up its ~30% market share. ? The investment from BH is not only a sign of an approaching turnaround of the American beauty sector but also Ulta's potential to significantly increase its stronghold against Sephora which currently holds ~20% market share. ?? ?? For European beauty companies looking to partner with American retailers, this means you need a diversified eCommerce that takes offline strengths but more importantly eCom conversion capabilities into account. ?? ?? News article linked in the first comment for those interested in reading more. #BeautySector #BusinessInsights #eCommerce #USA

?? Warren Buffett's Berkshire Hathaway just invested $220 M+ in Ulta Beauty. ?? ??What does this mean for the American beauty market? ?? Although Ulta has been a serious beauty contender and a strong competitor to Sephora in North America, the retailer's stock has been on the decline in recent years. ?? The declining stock seen in a post-COVID economy indicates both the state of the beauty industry and Ulta's struggle to keep up its ~30% market share. ? The investment from BH is not only a sign of an approaching turnaround of the American beauty sector but also Ulta's potential to significantly increase its stronghold against Sephora which currently holds ~20% market share. ?? ?? For European beauty companies looking to partner with American retailers, this means you need a diversified eCommerce that takes offline strengths but more importantly eCom conversion capabilities into account. ?? ?? News article linked in the first comment for those interested in reading more. #BeautySector #BusinessInsights #eCommerce #USA

I've been thinking about Ulta's earnings report, indicating slowing domestic growth attributed to a pull back in consumer spending. As the Ulta vs. Sephora ground war in the US reaches saturation with each brand supporting over 1400 US stores as well as channel partners in Target and Kohl's respectively, I'm reminded of a comparable real estate race between Walgreens and CVS in the late aughts. To all my fellow retail wonks out there, do you think this slowdown is a natural outcome of reduced runway for inorganic (new store) growth, or do we see this as an early indicator of interest rates finally taking hold and impacting demand? #retail #consumer #beauty #stores #realestate #economicindicators #ulta #sephora

SEPHORA TALES FROM THE CRYPT. EP 9. PARTNERSHIP IS A 2 WAY STREET.?Principles. Are you prepared to stand up for them? Even if there is short-term pain. Partnership. In order to work it has to be a win-win. Otherwise it feels like going the wrong way down a 1- way street. In the early days SEPHORA desperately needed ‘dept store’ brands (read L'Oréal, The Estée Lauder Companies Inc.) to attract, well, dept store (read Macy's, Nordstrom) customers. To say the brands were reluctant is an understatement. More like they were highly resistant to our overtures. We succeeded in getting an important one to ‘try us’ (name withheld to protect the guilty). Roughly a dozen stores. After a few months we had a honcho meeting- their execs and ours. Felt like the OK corral. Good news- results were off the charts. Make that great news. They came in prepared to add more stores. Even better news. Looking at the list of their store adds there was only one problem- there were zero mall stores. Only street locations. They were tip-toeing around the dept stores. No malls-no conflict. This was a major problem for me and my concept of partnership.?I said “I will give you a list of mall stores. Pick one. Any one. ONE! And we have a deal.”?Cupla weeks later they came back and said…No. No mall stores. At which point we asked them to leave. Sephora. Altogether. As painful as that was we simply could not live with 100-0 partnership. 95/5 we’d tolerate. 100-0 no. They didn’t really believe it, but within 2-3 months they were gone. It cost us $. But the lesson for our teams was priceless. We are not helpless. We believe in winning together. And we practice it. These kinds of decisions ultimately define who you are as a leader. Being true to hugely important principles in the face of adversity is perhaps the ultimate test. You are your principles. Or you are not. There is no inbetween. #partnershipistwo #youareyourprinciples?

The timing of Ulta Beauty's announcement Monday that Kecia Steelman would succeed Dave Kimbell as CEO was unexpected, but it wasn’t unexpected that the retailer would replace its top executive. The seeds were sown for Kimbell’s departure last year. In the second quarter, Ulta’s same-store sales dipped 1.3%, marking the first time in four years that the company underperformed Wall Street expectations. Kimbell acknowledged the retailer had ceded prestige market share to competitors, most prominently Sephora, in haircare and makeup. At the time, Ulta critics faulted its management for adjusting too slowly, and the chain initiated a turnaround strategy in the fall involving its assortment, social relevance, digital experience, loyalty members and more. Now, Steelman, who was integral in structuring the turnaround strategy, will oversee executing it. The well-respected former president and COO of Ulta is working to strengthen product categories where she believes Ulta can distinguish itself and cultivate enthusiastic store teams. Read more: https://bit.ly/3DXCf8j #hereforthefierce #beautyentrepreneur #wellnessentrepreneur #beautybusiness #beautynews

Ulta Beauty's recent Q1 earnings report highlights a significant shift in the beauty retail landscape, suggesting that the industry may be entering a period of moderation following years of explosive growth. While Ulta saw a modest 3.5% increase in net sales and a 1.6% rise in comparable store sales, these figures represent a slowdown compared to previous quarters. CEO Dave Kimbell attributed this deceleration to intensified competition and changing consumer preferences. Despite new brands and strong engagement with luxury products, Ulta experienced mid-single-digit declines in makeup sales, a sign that last year's growth surge is tapering off. This shift is not unique to Ulta; the broader beauty sector is grappling with similar challenges, as indicated by rising competition from online platforms like Amazon and successful in-store collaborations such as Sephora within Kohl's. Do the trends Ulta reference point to a potential industry-wide slowdown as inflation and economic pressures mount, impacting consumer spending habits even in the resilient beauty category? The phenomenon known as the "lipstick effect"—where consumers continue to purchase small luxuries during economic downturns—appears to be losing some of its protective power. Ulta's strategic adjustments, including lowering annual sales guidance and planning new brand collaborations, aim to regain momentum. However, these measures reflect a broader recalibration within the beauty industry, signaling that even this previously robust sector is not immune to the evolving economic landscape and competitive dynamics. #BeautyTrends #UltaBeauty #CosmeticsIndustry #MakeupSales #EconomicImpact #BeautyMarket #ConsumerTrends #RetailGrowth #InflationImpact #LipstickEffect

WWD BCEO Summit ??? was enlightening to be surrounded by so many wonderful and inspiring individuals. Beauty Barrage was delighted to host cocktails too! A few major takeaways, particularly from key retailers that left a lasting impression: * Ulta is opening 60 new doors this year, bringing the total to around 1,400 locations! * A remarkable 76% of Ulta’s sales come from in-store purchases * Customers visit Ulta for a shopping escape, making it a destination for experience as much as for beauty products. * SEPHORA?shared plans for a multi million dollar US in-store renovation, with a plan to reach $2B in sales at?Kohl's?locations. * Shoppers spend an average of 45 minutes in-store and often come with friends, making it a social and enjoyable experience. Sure, AI is still the future, but it’s clear that the in-store experience remains a cornerstone of success and continues to drive customer loyalty and human engagement. ?? ?? This is where Beauty Barrage excels. Our team of experts specializes in crafting bespoke in-store experiences that resonate with your target audience, drive sales, and foster brand loyalty. ?? Discover how our tailored approach can transform your retail space into a haven of human connection and engagement. ?? If you want to get in on the retail renaissance feel free to message me here so we can elevate your brand’s in-store experience together. #WWDBeautySummit #BeautyBarrage #BeautyIndustry #UltaBeauty #RetailInnovation #BeautyCommunity #InStoreExperience Sonia Summers Paula Scandone Alissa Spencer

Ok, so not all store walks are sunshine and roses....although it's not snow and freezing temperatures :-). As I walked Target stores recently, I was particularly interested in their store-within-store concepts with brands like Ulta Beauty and CVS Pharmacy and how its impacting the shopping experience. And, looking as a comparison verses the Kohl's-SEPHORA partnership. Since its start in 2020, the Target and Ulta Beauty collaboration has proven to be impactful for both companies. By January 2025, Ulta Beauty has expanded to 541 shop-in-shops within Target stores, with plans to reach 800 locations. This strategy has not only broadened Ulta's customer base but also enhanced Target's beauty offerings with prestige brands. The partnership has shown impressive results, with linked loyalty members spending twice as much as average members, demonstrating the power of strategic alliances in driving customer engagement and sales. However, the store-within-a-store model is not without its challenges. While it offers brands expanded reach and retailers a more diverse product range, it also requires careful management of logistics, staffing, and brand identity. For Ulta, there's a risk of cannibalizing sales from its standalone stores or diluting its brand image. Target, on the other hand, must balance the integration of Ulta's offerings with its own beauty products. And, as we see elsewhere in the store, Target still needs to address their "in stock/out of stock" issues with improved inventory management and replenishment execution. Despite these potential drawbacks, the overall success of this partnership suggests that when executed well, such collaborations can create significant value for retailers, brands, and consumers alike. #RetailInnovation #BeautyPartnership #TargetUlta #OmniChannelRetail #CustomerExperience #RetailStrategy

???What’s the latest news in beauty business? Bloomberg: Chris de Lapuente, the head of LVMH’s selective retailing division which includes Sephora, will retire on October 31. Beauty media: Bath & Body Works retail president Julie Rosen will step down on October 22, and the position will be eliminated. Analysts predict calming down of KOL-created beauty brands which are in fact, desperate to go offline. You will see them on taxis, trolleybuses, billboards .. and maybe one day ?? in physical retail. It’s a bit rainy for them now, outside of their comfort digital zone. #beauty #brand #strategy #online #offline