Ulta Beauty continues its brisk global expansion as it enters the U.K. market, one month after announcing plans to open stores in the Middle East.
The U.S. retail giant has acquired Space NK Ltd., a luxury beauty retailer with 83 locations in the U.K., Ireland, and online.
Space NK will operate as a standalone subsidiary of Ulta Beauty and will retain its management team, says Ulta president and CEO Kecia Steelman.
“International expansion is an integral part of our Ulta Beauty Unleashed plan,” Steelman says, "and the acquisition of Space NK offers a unique and strategically compelling opportunity to enter the growing U.K. market with a successful and growing brand."
“Along with our initiatives in Mexico and the Middle East, we are creating a broader platform for Ulta Beauty to unlock long-term, profitable growth.”
Financial terms of the transaction between Ulta and Space NK’s parent company, Manzanita Capital, were not disclosed.
In May of 2024, Ulta confirmed its focus on long-term global expansion as it announced its first international partnership, a joint venture with Mexican fashion & beauty retailer Grupo Axo, to open Ulta Beauty locations in Mexico. Last month, it partnered with Kuwaiti retail franchise operator Alshaya Group to open Ulta shops in Kuwait and Dubai.
Ulta Beauty stores are expected to be up and running in Mexico, Kuwait, and Dubai by the end of 2025.
Axo manages several international brands in Latin America such as Brooks Brothers, Guess, Abercrombie & Fitch, Bath & Body Works, Nike, and Victoria’s Secret.
Alshaya’s brand portfolio in the Middle East, Africa, and Europe includes H&M, The Body Shop, Victoria’s Secret, Starbucks, American Eagle, and Pottery Barn.
New Strategy, New Leadership Revamp Ulta’s Long-Term Outlook
The retail giant rolled out its Ulta Beauty Unleashed strategic plan in January in response to a dive in its net sales and market share.
After sluggish fourth-quarter 2024 results, Steelman laid out the new strategy that focuses on driving core growth first and adding new growing businesses second.
The strategic plan accompanied a major C-suite shakeup: in January, the company added Steelman as its CEO, replacing 11-year veteran Dave Kimball; and named Kelly Mahoney as Chief Marketing Officer and Amiee Bayer-Thomas as Chief Retail Officer. In April, Ulta added Lauren Brindley as Chief Merchandising and Digital Officer.
Last month, Ulta bid goodbye to Chief Financial Officer Paula Oyibo and announced an external search for her successor.
The overhauls came hand-in-hand with exclusive deals Ulta has landed with beauty brands for celebrities including Beyoncé, Shakira, Rihanna, and Paris Hilton.
The strategies appear to be in the beauty retailer's favor, as it reported in May a strong start to 2025: a 4.5% increase in first-quarter net sales to reach $2.8 billion.
“Our Ulta Beauty Unleashed plan is resonating with guests, energizing our team, and fueling growth," Steelman said at the time. “We believe our model uniquely positions us to win.”