While many brick and mortar stores are closing their doors, Ulta Beauty is one of the few
companies that is actually thriving thanks in part to both its overall selection and
wallet-friendly products.
But before you head to your nearest Ulta Beauty, there are some things you need to know.
It's true that Ulta reaps the benefits from their loyalty program, but, well, so do the
customers.
The free loyalty program allows shoppers to earn points for every dollar spent in Ulta
stores.
100 points equals a $3 discount, 250 points equals an $8 discount, and so on.
The only catch is that you'll need to use 'em or lose 'em.
If you spend less than $450 per calendar year, your Ultamate Rewards points will expire.
Being part of the loyalty program doesn't just earn you points, though.
Ultamate Rewards members receive access to additional discounts, too.
In an interview with Fortune, CEO Mary Dillon explained how the company replaced their members-only
coupon books with something a little more eye-catching - but kept the discounts we love.
As she put it,
"It's not just price, but about product and teaching the customers about beauty."
To that end, the Ultamate Rewards program has gotten a complete glow up, with new perks
that include some products offered exclusively to program members.
Past freebies have included high-end products, like Urban Decay eyeshadow sets and customized
Clinique foundation.
"You know you look a lot better without all that black s--- in your eyes."
"Hey, I like that black s---."
"This looks a lot better."
While all Ultamate Rewards members earn twice the amount of points during their birthday
month - plus a free gift for getting older - platinum and diamond members get some extra
goodies.
To get to platinum status, you'll need to spend $450 at the store during a single calendar
year.
This may sound like a lot, but with the average woman spending $15,000 on beauty products
throughout her lifetime, that figure starts to make a lot of sense.
As a platinum member, you'll learn 1.25 points per dollar as opposed to just one.
You'll also get a $10 coupon to celebrate your birthday and - the best part - your points
will never expire.
Hallelujah.
Shoppers who frequently buy luxury makeup may find it easy to reach the next level:
diamond status.
This is the highest level of the loyalty program and it requires an annual spending of $1,200.
That's a lot of lipstick.
But if you can swing it, you'll get all the rewards that come with being a platinum member,
plus free shipping on orders over $25 and an annual gift of a $25 dollar beauty service
reward card.
"This is so cool!"
"This is what having money feels like."
Being an Ultamate Rewards member isn't the only way to take advantage of free products.
The company also frequently gives away gifts with the purchase of select products, sometimes
running dozens of different promotions at the same time.
From a free duffel bag with any $70 Issey Miyake men's purchase to a free Mini Dolly
Lip Polish with any $25 Buxom purchase, there are plenty of freebies to choose from, all
from a wide range of price points.
But make no mistake - Ulta isn't giving this stuff away out of sheer kindness.
There's a science behind why companies like Ulta and DSW give away free gifts with purchase.
If a luxury item comes with a freebie, consumers tend to consider the free item to be of higher
quality, and are actually willing to pay more for the item by itself, according to a study
published in the Journal of Consumer Research.
Additionally, the Journal of Marketing reported that someone who receives a free product is
more likely to talk about the company they got the product from, thus boosting positive
word of mouth.
So take the free stuff, but don't be a sucker about it.
And hey, even if you know the real reasons why they're giving it to you, free stuff is
still great.
The best time to shop at Ulta is during the company's 21 Days of Beauty Event, which comes
around semi-annually in the fall or the spring.
This sale offers up some deep discounts on select products on each of the 21 days.
Allure highlighted some of the best deals you could walk away with from the 21 Days
that began in March 2019.
On the first day of the event, shoppers received 50 percent off products like the Tarte "Lights,
Camera, Lashes" Mascara, a Lancome Cils Booster XL Mascara Primer, and the Exuviance Performance
Peel AP25.
Throughout the rest of the month and into April, products from big brands like Benefit
Cosmetics, MAC, Smashbox, and Urban Decay were similarly marked down.
For Ulta beauty enthusiasts, the three-week sale is no joke.
As one consumer tweeted,
"Ulta's 21 Days of Beauty is my version of March Madness."
Yes, Ulta carries the brands you know and love, but they also have their very own brand
- and you might want to try it.
In a vlog, makeup reviewer and YouTube personality Jessica Braun said the Ulta Beauty Collection's
Full Coverage Liquid Concealer had become her favorite concealer.
She also said good things about the brand's Matte Eye Primer - and not just based on its
low price.
"I think this is a fantastic primer regardless of the price point, et cetera."
The reviewer has also spoken highly of the eyeshadows in the Melissa Michelle palette,
and she isn't the only one.
Some of the editorial team at Byrdie also tried some of the store brand products and
were similarly impressed by Ulta's eyeshadows and primers.
And you don't need to take anyone's word for it, either.
While consumer reviews can be helpful, if you live near an Ulta location, you can walk
right in and try any of these products at the mirror for yourself, no strings attached.
"Take a look.
I think that looks really nice on you."
"Shelly, do you think I'm pretty?
If you're not sold on the store brand, don't sweat it: You have about 499 others to choose
from.
Whether your budget is big or small, you have seemingly limitless options.
You can find inexpensive brands like NYX Professional Makeup, CoverGirl, L'Oréal, and even the
classic Wet 'n' Wild.
Walk down a few more aisles, and you can also pick up your luxury staples from Dior and
MAC.
This combination of high-end, prestige products and more inexpensive items, which the company
calls mass makeup, not only sets Ulta apart from other beauty retailers, but also mirrors
consumers' shopping habits.
Speaking in an interview with Digiday, retail analyst Jane Hali said,
"The fact that Ulta sells both categories in one location is a differentiator in the
marketplace - it's how we shop today."
One of the most daunting things about spending a lot of money on makeup is not knowing if
you've picked the right shade.
After all, you can only color-match so well in-store.
Luckily, Ulta has what they call a generous returns policy.
And here's the thing - they're not lying.
In fact, HuffPost lists Ulta Beauty as one of the top four makeup stores with the best
return policies, along with Sephora, Blue Mercury, and Beauty.com.
Whether you've bought the wrong shade of concealer or picked up something that's just not right
for your hair, Ulta says they'll allow you to return or exchange products for any reason
within 60 days from purchase - even if that reason is just "turns out, I don't like brow
gel."
"I don't want to say that ruins my day, but that ruins my day."
"I'd love cash, thanks."
You may be wondering, how can Ulta afford such a generous return policy?
Could it be because the stores turn around and resell the used returns?
That's what a former employee alleged on social media.
In a since deleted Twitter thread, the employee claimed that she and other workers had been
instructed by management to repackage and reseal returned items, putting them back on
the shelf for the next unsuspecting customer.
As she claimed in her original post,
"They would resell EVERYTHING."
Other employees also chimed in with similar experiences.
So what was going on?
According to Bloomberg, the allegation resulted in an 18-state lawsuit.
In May 2019, the Shuman Law Firm announced their pending investigation into Ulta Beauty.
Despite the claims, Ulta Beauty categorically denies encouraging employees to resell used
makeup.
As the company posted on its website,
"Hearing from even one person alleging our policy is not being followed is one too many.
We have zero tolerance for any actions that would compromise the integrity of the products
we sell."
In May 2019, Ulta Beauty introduced a new section called "Wellness" into 350 of its
stores, with plans to expand the new venture even further as the year goes on.
Monica Arnaudo, Ulta senior vice president of merchandising, said in an interview with
Glossy,
"There is a growing interest from the consumer - and this goes beyond the Ulta consumer - around
what they are putting on their bodies, what they are putting in them and how to achieve
overall beauty.
This quest for wellbeing has evolved into beauty and self-care."
The sort of products sold in this section include deodorants, salves, scrubs, and oils,
all curated to be approachable by customers who might not describe themselves as beauty
experts.
And Ulta offers more than just an expanding variety of products.
If you're not a regular, you may not have even realized that every store offers beauty
services from haircuts to highlights to lash extensions.
In 2016, Ulta's beauty services only made up five percent of the company's revenue,
but according to Fast Company, Ulta salon patrons spend nearly three times as much as
non-salon customers, turning what could be just a makeup store into their one-stop shop
for all-purpose beauty.
Ulta hasn't stopped in their quest for more.
In February 2019, the company began allowing Ultamate Rewards members to redeem points
on beauty services, and it also relocated the business' brow bars closer to the front
of the stores, to entice more customers into getting their eyebrows shaped while they shop.
Behind the scenes, Ulta Beauty also works to give back.
The company runs the Ulta Beauty Charitable Foundation, which purports to help women find
employment through its Dress for Success program.
As part of the program, the company claims,
"Associates across our markets volunteer their time by sorting and inventorying suits for
that crucial first interview, assisting on-site with special events or providing hair and
makeup touchups to women clients."
The Ulta Beauty Charitable Foundation also runs the Associate Relief Program, which provides
financial grants to Ulta employees affected by natural disasters.
In addition to running their own foundation, Ulta also partners with the Breast Cancer
Research Foundation.
Through donations from employees, business partners, and shoppers, the company has raised
over $22 million since 2009 and continues to fund projects to cure, prevent, and treat
breast cancer.
Back in 2016, Ulta announced an expansion goal that would involve opening a grand total
of 1,700 stores.
By mid-2019, the company operated nearly 1,200 locations - so the company still has a long
way to go.
Even with a big expansion goal, though, Ulta isn't necessarily looking for just any old
shopper.
According to a writeup in The Washington Post of the company's ambitions in 2016, the plan
is to focus more on beauty enthusiasts.
That is, not just people who buy makeup frequently, but big spenders who like to try out new products
as a hobby.
At the time, Ulta estimated that these kinds of shoppers made up 77 percent of spending
in the beauty industry.
Naturally, the company would love to attract even more beauty enthusiasts like this.
And, thanks in part to their loyalty program, they have.
By 2018, the program amassed 28 million members, and that subset of people make up a whopping
90 percent of the company's sales.
Perhaps that's the secret of Ulta's success - if beauty is your lifestyle, they've got
everything you need.
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