Ulta vs. Sephora

Ulta vs. Sephora – The Battle Begins

Insight by Leah

A recent New York Times article highlighted how Ulta, a national chain of beauty stores, is close on the heels of its top competitor, Sephora.  Ulta, which was originally a discount retailer, currently has 331 stores nationwide (versus Sephora’s 230), but the big news is Ulta’s product offerings – the store carries designer fragrances and drugstore staples, and more importantly, a growing number of mass prestige brands including Benefit and Smashbox.  Sephora still offers more prestige brands, including the wildly popular NARS line and Tarte Cosmetics, although Ulta is attracting luxury brands.  Ulta’s mix of mass market and luxury brands appeals to many women as it can be a one-stop beauty shop for everything from a favorite Maybelline mascara to a desired Lorac cream.  Indeed, Lorac, a company that was initially wary of signing with Ulta (the line is already carried in Sephora) likened Ulta to "a Baskin Robbins … There’s nonfat yogurt, but there’s the good stuff too."  As for online, at this point, Sephora appears to have a clear advantage by offering shoppers a Beauty Insider program and free samples with every order.  However, Ulta is now pushing a very popular points program that results in discounts on orders, and as many bloggers point out, Ulta is often less expensive for high-end products.  We’ll wait to see how this battle plays out online and offline.

Link to New York Times Article

Sephora Website

Ulta Website