Ulta Beauty's Quest For The Ultimate Omni-Channel Experience

By Matt Pillar, chief editor

July 2015 Integrated Solutions For Retailers

Almost two years after an intensive e-commerce upgrade, Ulta Beauty is making steady progress toward its goal of reaching 10% of total sales via the Internet — a major milestone in the cosmetics segment.

Categories like electronics, books, music, and software have led the online retailing league since the dawn of e-commerce because, generally speaking, consumers don’t have to try them on or test them out before they buy. Even if they prefer to do so, they can often sample those wares from their shopping device du jour. Cosmetics, on the other hand, require a high-touch, highly personalized path to the sale. That is, until the consumer has discovered the product mix that achieves their desired outcome. As Ulta Beauty found, once the consumer has mastered the look they’re after, they’re more often than not willing to turn to e-commerce to replenish the cosmetics they need to achieve it. That realization was recently proven in spades by the 56 percent online comp sales increase Ulta Beauty experienced in Q4 2014. It came just two years after a comprehensive investment in its omni-channel retailing systems.