Ulta Suspending Most In-Store Services in Response to the Coronavirus

Ulta Beauty’s steps to enhance safety measures in light of COVID-19 include temporarily suspending all in-store makeup, skin and brow services.

The beauty retailer is also increasing sanitation measures, store-cleaning frequency and availability of hand sanitizer in high traffic areas, as well as implementing a no-touch approach for its shade-matching display. 

“We’ve posted signage in stores directing guests who want to try a product to find an associate who will sanitize testers on demand,” CEO Mary Dillon added during the company’s earnings call.

Stores will still provide hair services, a decision that CEO Mary Dillon said is “based on feedback from experts.”

The company employs about 44,000 associates, and in addition to canceling international travel, limiting U.S. travel, and encouraging employees to stay home when ill, Ulta is adjusting policies to ensure quarantined associates will be compensated during that time, she said.

While the company hasn’t experienced a material impact to its supply chain stemming from the coronavirus, it has begun to see some impact on store traffic in some markets.  

“On the flip side, our e-commerce business has continued to perform strongly,” said Dillon, “and I’d say that’s true broadly really even including affected area.”

Omnichannel Wins

Ulta reported an 8.5% increase in net sales to $2.31 billion, in its fourth quarter of 2019, ended Feb. 1. Comp-store sales rose 4% for the period, compared with last year’s 9.4% increase.

The increases were seen in spite of softness in the makeup category, with Ultra compensating for the category declines with omnichannel services and marketing events.