Why Ulta is a Fan of Target, TJX, DSW
Ulta’s CEO Mary Dillon said this week that the beauty retailer has no intention of adding more prestige brands to its stores. Currently, Ulta sells an assortment of high- and low-end brands in its stores, something Dillon believes is the strength of the company. She also hopes to double e-commerce sales in the coming years. Ulta CFO Scott Settersten said the retailer loves to have real estate near Target stores and other off-price retailers like Marshall’s, T.J. Maxx and DSW.
Total Retail's Take: Although the retail industry is in a bit of a slump, cosmetic and beauty companies aren’t feeling the pain. As a woman, I can see why — if my mascara or BB cream is running low, I immediately go out and replace it. And if my beauty shop is located next to a Target or TJX store, it’s a win-win. I can’t walk by a Target or Marshall’s and not go in, and the same applies for Ulta. I can only imagine this real estate strategy is a sales booster for the beauty and cosmetics retailer.