Ulta halts brick and mortar growth in favor of tech innovation

Beauty retailer Ulta announced at its recent investor conference that it plans to slow down its introduction of new store locations in favor of a focus on tech. Ulta currently operates 1,163 brick and mortar stores across the United States, and has been opening on average 100 new locations per year. Though it originally had projected a plan for 300 new stores in the next three years, Ulta now plans to decrease its plan. The retailer plans to open 80 stores next year, 75 in 2020 and 70 in 2021.

While its brick and mortar growth is slowing pace, Ulta’s sales are growing, as are its technology-based plans. The company saw a 7.8 percent growth in its third quarter sales, and with this plans to drive further sales as well as consumer engagement with well-planned, accelerated tech initiatives that will act as digital tools to improve its existing locations.

Ulta has investing in Iterate, a digital workflow partner, as well as online booking tool Spruce. These, alongside the retailers recently acquired tech startups QM Scientific and GlamST that work with AI and augmented reality respectively, can help to bring a more omnichannel, integrated approach to Ulta’s consumer experience.

“We see exciting possibilities ahead to continue to increase market share, profitability and long-term shareholder value through our renewed strategic plan,” said Ulta Beauty Chief Executive Officer Mary Dillon. “This plan reflects deep guest and category insights that have led to robust innovation around guest experience, new capabilities in personalization and digital experiences, and laser focus on operational efficiencies.”