Ulta Magnificence Hits Pause on Goal Store-in-Store Rollout Amid Strategic Refocus

THE WHAT? Ulta Magnificence will pause additional enlargement of its Goal shop-in-shops in 2025, following the rollout of greater than 600 places for the reason that partnership started in 2021.

THE DETAILS Talking at JPMorgan’s Retail Spherical Up Convention, new CEO Kecia Steelman mentioned the main focus within the 12 months forward will shift towards driving operational effectivity and worth inside the current places. The shop-in-shops — which characteristic devoted Ulta Magnificence areas inside Goal shops promoting status cosmetics — had been as soon as slated to achieve 800 doorways. That aim is now on maintain. No new shop-in-shop enlargement plans have been introduced past 2025. The royalty-based mannequin had contributed to Ulta’s “different income” line, however the revenue has not been highlighted previously two quarters amid a dip in that class.

THE WHY? The pause comes as Ulta Magnificence rethinks its development technique following a number of quarters of slowed efficiency within the status magnificence area. Steelman’s broader turnaround plan, Ulta Magnificence Unleashed, places larger emphasis on e-commerce, loyalty, worldwide enlargement, and stand-alone shops — signalling a transfer away from counting on exterior retail partnerships to drive development.