Ulta Beauty Expands into Outlets, Targeting High-Spending Shoppers

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View profile for David Hinkle

The Outlet Resource Group7K followers

Many CRE professionals and capital market investors assume outlet shoppers are simply bargain hunters. Retailers clearly know better. Ulta Beauty is aggressively expanding into the outlet sector. The Wall Street Journal reported this week that Ulta expects growth to slow as shoppers continue to hunt for value in a competitive market. In many markets, outlet shopper demographics match or exceed nearby power centers and lifestyle centers. These shoppers are brand aware. The travel to shop and come to spend $$$. Dwell times exceed other shopping centers, and they often visit multiple stores in one trip. That customer profile aligns very well with beauty. • Small footprint • High margin • Brand driven Ulta isn’t chasing discount traffic. They’re chasing destination shoppers who come to outlets specifically to shop brands......and spend. #Retail #CRE #OutletCenters #RetailStrategy

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Andrew Duncan

Cotswolds Designer Outlet297 followers

3w

we are also seeing growth in beauty fascias taking space at outlets for a number of other reasons - 1. the lowering of the average age of outlet shoppers. Younger shoppers are driving growth in wellbing and it is important for outlets to have a presence in this category to capture share of spend. 2. Outlets are diversifying their tenant mix to offer a more nuanced retail line up - anchors and international brands will still be powerhouses but different categories make for longer dwell and high spend per visit 3. Beauty brands are very clever at maintaining a presence in an off price environment without sullying their brand - stock is often sold though outlets when packaging changes which feels a totally legitimate reason to offer a discount. Let's not forget that despite its high quality POS and high integrity of their brands cospetics and beauty are well versed at sales promotion with gift packs and incentives - moving into outlets is a zero risk option set against this track record and will only result in new customer acquisition.

Suzanne Woodard

The Refind Room762 followers

3w

Anecdotally, we can say the same thing about consignment shoppers.

Atul Kirti

InfoCepts1K followers

1w

Interesting shift, positioning outlets as destination shopping hubs changes how brands approach expansion strategies.

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TERRY ATWOOD

Vision Essence4K followers

3w

Lovely being greeted by a Man with make up on when you take your Mom in to look around …..WTH.

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