Ulta Beauty Inc.’s shares jumped by 11% following the outline of plans aimed at boosting sales as given by the CEO amidst a slowdown experienced in the first quarter. Despite this slowdown, Ulta remains one of the biggest specialty retailers in the U.S. The initiatives to revamp sales include leveraging its loyalty program, introducing new and exclusive brands, expanding international reach, and investing in digital and omnichannel capabilities.
As a part of the strategy, the CEO also highlighted the benefit of its loyalty program, which accounts for over 90% of the company’s sales and has well over 33 million active users. The company plans to continue making this program appealing for customers, providing special promotions and personalized offers.
The company is also planning to add about 40 new brands this year, looking to fuel its momentum in the prestige cosmetics segment, focusing on both established and emerging names.
In terms of geographical expansion, the company plans to make its debut in Canada to tap into the international market. Digital initiatives include improvements in mobile apps and the online shopping experience.
The CEO believes that these strategies will bring the sales momentum back on track and help the company maintain its leadership position in the beauty retail sector.
