Beauty Store Business magazine - January, 2020

ULTA Beauty's Loyalty Program Passes 16-Million Mark

ULTA Beauty's Ultamate Rewards loyalty program now has "16.1 million active members" and "drives well over 80%" of the national beauty retailer's sales, CEO Mary Dillon told analysts during her opening remarks in the public company's second quarter 2015 earnings conference call Aug. 27.

The number of ULTA's Ultamate Rewards members is up 18% over the prior 12-month period, according to Dillon.

"Our store associates are doing a fantastic job converting guests to loyalty members and they achieved a significant increase in conversion, leading to an acceleration in new-members growth," stated Dillon. "Members-retention rate increased, and we continue to see higher frequency of purchases, higher average ticket and higher average sales per member.

"In the second quarter," added Dillon, "our Platinum members—our guests who spend more than $400 with ULTA Beauty during the year—received many perks, including Platinum-only beauty steals, Platinum bonus-points offers, early access to new products, a Platinum social contest, free-shipping offers and targeted surprise and delight gifts."

In other news from the conference call with analysts, Dillon said that ULTA plans to roll out national-TV advertising to support its 21 Days of Beauty! event this month as well for the upcoming holiday season. "This national television-advertising campaign marks the first in ULTA Beauty's history—an important step towards driving a strong and sustainable brand position, while increasing awareness among beauty enthusiasts and driving new-guest acquisitions," noted Dillon.

Also, Dillon shared that ULTA opened 20 stores during the second quarter—ending it with 817 stores. The company plans to open 44 stores in the third quarter and 15 stores in the fourth quarter.

[Image courtesy of ULTA Beauty]

[Earnings-call transcript by Seeking Alpha used]