Who Owns Ultra Beauty?

Ulta Beauty was founded in 1990 by Richard George and Terry Hanson in Bolingbrook, Illinois. The founders identified a gap in the beauty retail market: consumers had to visit department stores for prestige brands and drugstores or mass retailers for affordable brands, with no single destination offering both. Ulta's concept of combining prestige and mass-market beauty products in a single, accessible retail environment was innovative and differentiated from existing options.

The company grew steadily through the 1990s and 2000s, expanding its store footprint and product selection. Ulta Beauty went public in October 2007 on the NASDAQ stock exchange, raising capital to accelerate its expansion. The IPO was well-received, reflecting investor confidence in the company's differentiated retail concept and growth potential.

Ulta Beauty's growth accelerated significantly in the 2010s as the company expanded from approximately 400 stores to over 1,200 stores by the end of the decade. The company's Ultamate Rewards loyalty program became one of the most successful in retail, with tens of millions of members who drive a significant portion of the company's sales. The loyalty program's data also provides Ulta with valuable insights into customer preferences and purchasing behavior.

A significant strategic development came in 2021 when Target Corporation announced a partnership with Ulta Beauty to open "Ulta Beauty at Target" shop-in-shop locations within Target stores. This partnership expanded Ulta's reach to Target's massive customer base and provided a new channel for beauty product sales without requiring Ulta to open additional standalone stores.

Ulta Beauty generates annual revenues of approximately $11 billion and employs approximately 47,000 people. The company has been investing in its digital capabilities, supply chain, and store experience to maintain its competitive position against Sephora (LVMH) and other beauty retailers.