![]() ![]() The pandemic might put this move on hold, but the expansion could set the retailer up for future growth. At the start of 2020, Sephora announced its largest North American store expansion ever, with plans to open 100 new locations in second-tier markets like Charlotte, North Carolina Nashville, Tennessee and San Jose, California. Ulta has long dominated middle America, but Sephora is inching closer to those consumers. That average shrinks to 1 in states like Indiana, Michigan, Iowa, Kansas, and Nebraska. There are roughly 35 Sephoras within five miles of every New Jersey Ulta. In New York, there are about 23 Sephora locations within five miles of every Ulta store. The states in which Ulta and Sephora might compete for customers include California, New Jersey, and New York. Sephora operates over 2,600 stores in 36 countries, with over 500 in the US. Ulta Beauty operates 1,264 retail stores across 50 states. ![]() LVMH, which owns Sephora, saw similar struggles with cosmetics and perfume sales down 18%. As the cosmetics giants try to adapt to the new normal and win consumers' long-term loyalty, COVID-era shopping habits could determine which retailer comes out on top.ĬOVID has stalled the race for middle America During the first quarter, net sales decreased 32.7%. Ulta had to temporarily close its more than 1,200 stores when the pandemic hit. Approximately 30% of the beauty industry market was shut down with the closure of premium beauty product outlets. With fewer places to go and, for some, less money to spend, consumers have to be more choosy about brand loyalty and financial priorities.Īccording to a McKinsey study, in-store shopping accounted for up to 85% of beauty product purchases prior to the COVID-19 outbreak. Ulta Beauty and Sephora have been battling for industry dominance for years. And now that both retailers are dealing with the same overwhelming obstacle, their competition bears higher stakes. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |