THE WHAT? Ulta Beauty has announced plans to close 19 stores, while also lowering the amount of stores set to open in in fiscal 2020 to 30, as opposed to the previous guidance of between 30 and 40 this year, due to the impact of the coronavirus.
THE DETAILS The retailer also detailed plans to enter the Canadian market by mid-2021.
Having completed its phased reopening process following temporary closures due to COVID-19, Ulta expects to commence new store openings in mid-August. The retailer did not disclose which 19 stores were set for closure.
Ulta stated it expected to reassign sales staff ‘where possible.’ Shares of the company fell 1 percent on Monday.
THE WHY? Discussing the implications of the pandemic, the company stated that it “will influence longer-term market shifts and create new real estate opportunities,” supporting Ulta’s goal to operate between 1,500 to 1,700 stores in the U.S.
Mary Dillon, CEO, said, “To do so, we are proactively optimizing our real estate portfolio and have made strategic decisions to temporarily reduce new store openings and close a limited number of stores this year. Overall, our real estate portfolio generates healthy returns, and this limited and targeted approach to closing stores will position Ulta Beauty for even stronger financial performance in the future.”