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.
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00:00While many brick-and-mortar stores are closing their doors, Ulta Beauty is one of the few
00:04companies that is actually thriving thanks in part to both its overall selection and
00:08wallet-friendly products.
00:10But before you head to your nearest Ulta Beauty, there are some things you need to know.
00:14It's true that Ulta reaps the benefits from their loyalty program, but, well, so do the
00:18customers.
00:19The free loyalty program allows shoppers to earn points for every dollar spent in Ulta
00:22stores.
00:23100 points equals a $3 discount, 250 points equals an $8 discount, and so on.
00:28The only catch is that you'll need to use them or lose them.
00:31If you spend less than $450 per calendar year, your Ultimate Rewards points will expire.
00:36Being part of the loyalty program doesn't just earn you points, though.
00:39Ultimate Rewards members receive access to additional discounts, too.
00:42In an interview with Fortune, CEO Mary Dillon explained how the company replaced their members-only
00:46coupon books with something a little more eye-catching, but kept the discounts we love.
00:51As she put it,
00:52"...it's not just price but about product and teaching the customers about beauty."
00:55To that end, the Ultimate Rewards program has gotten a complete glow-up, with new perks
00:59that include some products offered exclusively to program members.
01:02Past freebies have included high-end products, like Urban Decay eyeshadow sets and customized
01:06Clinique foundation.
01:07You know, you really do look a lot better without all that black s**t on your eyes.
01:11Hey, I like that black s**t.
01:14This looks a lot better."
01:17While all Ultimate Rewards members earn twice the amount of points during their birthday
01:20month, plus a free gift for getting older, Platinum and Diamond members get some extra
01:24goodies.
01:25To get Platinum status, you'll need to spend $450 at the store during a single calendar
01:29year.
01:30This may sound like a lot, but with the average woman spending $15,000 on beauty products
01:34throughout her lifetime, that figure starts to make a lot of sense.
01:38As a Platinum member, you'll earn 1.25 points per dollar, as opposed to just one.
01:42You'll also get a $10 coupon to celebrate your birthday and, the best part, your points
01:46will never expire.
01:47Hallelujah!
01:48Shoppers who frequently buy luxury makeup may find it easy to reach the next level,
01:52Diamond status.
01:53This is the highest level of the loyalty program, and it requires an annual spending
01:57of $1,200.
01:58That's a lot of lipstick, but if you can swing it, you'll get all the rewards that come with
02:02being a Platinum member, plus free shipping on orders over $25, and an annual gift of
02:06a $25 Beauty Service Reward Card.
02:09This is so cool!
02:11Is this what having money feels like?
02:14Being an Ultimate Rewards member isn't the only way to take advantage of free products.
02:18The company also frequently gives away gifts with the purchase of select products, sometimes
02:22running dozens of different promotions at the same time.
02:25From a free duffel bag with any $70 Issey Miyake Men's Purchase to a free mini Dolly
02:29Lip Polish with any $25 Buxom Purchase, there are plenty of freebies to choose from, all
02:34from a wide range of price points.
02:36But make no mistake, Ulta isn't giving this stuff away out of sheer kindness.
02:40There's a science behind why companies like Ulta and DSW give away free gifts with purchase.
02:45If a luxury item comes with a freebie, customers tend to consider the free item to be of higher
02:50and are actually willing to pay more for the item by itself, according to a study published
02:53in the Journal of Consumer Research.
02:55Additionally, the Journal of Marketing reported that someone who receives a free product is
02:59more likely to talk about the company they got the product from, thus boosting positive
03:03word of mouth.
03:04So take the free stuff, but don't be a sucker about it.
03:07And hey, even if you know the real reasons why they're giving it to you, free stuff is
03:10still great.
03:12The best time to shop at Ulta is during the company's 21 Days of Beauty event, which comes
03:16around semi-annually in the fall or the spring.
03:18This sale offers up some deep discounts on select products on each of the 21 days.
03:22Allure highlighted some of the best deals you could walk away with from the 21 Days
03:26that began in March 2019.
03:27On the first day of the event, shoppers received 50 percent off products like the Tarte Lights
03:31Camera Lashes Mascara, a Lancôme Cell Booster XL Mascara Primer, and the Exuvian's Performance
03:37Peel AP25.
03:38Throughout the rest of the month and into April, products from big brands like Benefit
03:42Cosmetics, MAC, Smashbox, and Urban Decay were similarly marked down.
03:46For Ulta beauty enthusiasts, the three-week sale is no joke.
03:49As one consumer tweeted,
03:50"'Ulta's 21 Days of Beauty' is my version of March Madness."
03:53Yes, Ulta carries the brands you know and love, but they also have their very own brand.
03:58And you might want to try it.
03:59In a vlog, makeup reviewer and YouTube personality Jessica Braun said the Ulta Beauty Collection's
04:04Full Coverage Liquid Concealer had become her favorite concealer.
04:07She also said good things about the brand's matte eye primer, and not just based on its
04:11low price.
04:12I think this is a fantastic primer, regardless of the price point, etc."
04:18The reviewer has also spoken highly of the eyeshadows in the Melissa Michelle palette,
04:21and she isn't the only one.
04:23Some of the editorial team at Byrdie also tried some of the store brand products, and
04:27were similarly impressed by Ulta's eyeshadows and primers.
04:30And you don't need to take anyone's word for it, either.
04:33While consumer reviews can be helpful, if you live near an Ulta location, you can walk
04:36right in and try any of these products at the mirror for yourself, no strings attached.
04:40Take a look.
04:42I think it looks real nice on you."
04:44Shelly, do you think I'm pretty?"
04:48If you're not sold on the store brand, don't sweat it.
04:50You have about 499 others to choose from.
04:53Whether your budget is big or small, you have seemingly limitless options.
04:56You can find inexpensive brands like NYX Professional Makeup, CoverGirl, L'Oreal, and even the classic
05:01Wet n' Wild.
05:02Walk down a few more aisles, and you can also pick up your luxury staples from Dior and
05:06MAC.
05:07The combination of high-end prestige products and more inexpensive items, which the company
05:11calls Mass Makeup, not only sets Ulta apart from other beauty retailers, but also mirrors
05:15consumer shopping habits.
05:17Speaking in an interview with Digiday, retail analyst Jane Halley said,
05:20"...the fact that Ulta sells both categories in one location is a differentiator in the
05:24marketplace.
05:25It's how we shop today."
05:27One of the most daunting things about spending a lot of money on makeup is not knowing if
05:30you've picked the right shade.
05:32After all, you can only color match so well in-store.
05:34Luckily, Ulta has what they call a generous returns policy.
05:37And here's the thing, they're not lying.
05:40In fact, HuffPost lists Ulta Beauty as one of the top four makeup stores with the best
05:43return policies, along with Sephora, Blue Mercury, and Beauty.com.
05:47Whether you've bought the wrong shade of concealer or picked up something that's just not right
05:51for your hair, Ulta says they'll allow you to return or exchange products for any reason
05:55within 60 days from purchase.
05:57Even if that reason is just,
05:58"...turns out I don't like brow gel."
06:00"...I don't want to say that ruins my day, but that ruins my day."
06:03"...I'd love cash, thanks."
06:05You may be wondering, how can Ulta afford such a generous return policy?
06:09Could it be because the stores turn around and resell the used returns?
06:12That's what a former employee alleged on social media.
06:15In a since-deleted Twitter thread, the employee claimed that she and other workers had been
06:18instructed by management to repackage and reseal returned items, putting them back on
06:22the shelf for the next unsuspecting customer.
06:25As she claimed in her original post, they would resell everything.
06:29Other employees also chimed in with similar experiences, so what was going on?
06:33According to Bloomberg, the allegation resulted in an 18-state lawsuit.
06:37In May 2019, the Schumann law firm announced their pending investigation into Ulta Beauty.
06:41Despite the claims, Ulta Beauty categorically denies encouraging employees to resell used
06:45makeup.
06:46As the company posted on its website,
06:48"...hearing from even one person alleging our policy is not being followed is one too many.
06:52We have zero tolerance for any actions that would compromise the integrity of the products
06:56we sell."
06:57In May 2019, Ulta Beauty introduced a new section called Wellness into 350 of its stores,
07:02with plans to expand the new venture even further as the year goes on.
07:06Monica Arnado, Ulta's senior vice president of merchandising, said in an interview with
07:10Glossy,
07:11"...there is a growing interest from the consumer, and this goes beyond the Ulta consumer, around
07:15what they are putting on their bodies, what they are putting in them, and how to achieve
07:18overall beauty.
07:19This quest for well-being has evolved into beauty and self-care."
07:22The sort of products sold in this section include deodorants, salves, scrubs, and oils,
07:26all curated to be approachable by customers who might not describe themselves as beauty
07:30experts.
07:31And Ulta offers more than just an expanding variety of products.
07:34If you're not a regular, you may not have even realized that every store offers beauty
07:37services from haircuts to highlights to lash extensions.
07:41In 2016, Ulta's beauty services only made up 5 percent of the company's revenue, but
07:45according to Fast Company, Ulta's salon patrons spend nearly three times as much as non-salon
07:50customers, turning what could be just a makeup store into their one-stop shop for all-purpose
07:54beauty.
07:55But this hasn't stopped in their quest for more.
07:57In February 2019, the company began allowing Ultimate Rewards members to redeem points
08:01on beauty services, and it also relocated the business' brow bars closer to the front
08:05of the stores, to entice more customers into getting their eyebrows shaped while they shop.
08:10Behind the scenes, Ulta Beauty also works to give back.
08:13The company runs the Ulta Beauty Charitable Foundation, which purports to help women find
08:16employment through its Dress for Success program.
08:19As part of the program, the company claims,
08:21Associates across our markets volunteer their time by sorting and inventorying suits for
08:25that crucial first interview, assisting on-site with special events, or providing hair and
08:29makeup touch-ups to women clients.
08:31The Ulta Beauty Charitable Foundation also runs the Associate Relief Program, which provides
08:35financial grants to Ulta employees affected by natural disasters.
08:38In addition to running their own foundation, Ulta also partners with the Breast Cancer
08:42Research Foundation.
08:43Through donations from employees, business partners, and shoppers, the company has raised
08:47over $22 million since 2009, and continues to fund projects to cure, prevent, and treat
08:52breast cancer.
08:54Back in 2016, Ulta announced an expansion goal that would involve opening a grand total
08:58of 1,700 stores.
09:00By mid-2019, the company operated nearly 1,200 locations, so the company still has a long
09:04way to go.
09:05Even with a big expansion goal, though, Ulta isn't necessarily looking for just any old
09:09shopper.
09:10According to a write-up in The Washington Post of the company's ambitions in 2016, the
09:14plan is to focus more on beauty enthusiasts.
09:17That is, not just people who buy makeup frequently, but big spenders who like to try out new products
09:20as a hobby.
09:21At the time, Ulta estimated that these kinds of shoppers made up 77 percent of spending
09:25in the beauty industry.
09:26Naturally, the company would love to attract even more beauty enthusiasts like this.
09:31And thanks in part to their loyalty program, they have.
09:33By 2018, the program amassed 28 million members, and that subset of people make up a whopping
09:3890 percent of the company's sales.
09:40Perhaps that's the secret of Ulta's success.
09:42If beauty is your lifestyle, they've got everything you need.