Key Takeaways:
Sephora's Strategic Partnerships Enhance Foot Traffic: Collaborations with retailers like Kohl's have expanded Sephora's reach, leading to increased in-store visits.
Ulta Beauty's Growth Moderates Amid Changing Consumer Preferences: Despite previous surges, Ulta's foot traffic growth has decelerated, reflecting broader industry trends.
Evolving Consumer Behavior Impacts Both Retailers: Shifts towards online shopping and economic factors influence in-store visits for both Sephora and Ulta Beauty.
Changing Consumer Behavior Sparks Strategic Shifts in Beauty Retail
In 2025, beauty retailers are navigating a noticeable shift in consumer behavior. While the post-pandemic era initially fueled a surge in beauty spending—driven by a renewed focus on self-care and personal grooming, recent months have seen shoppers adjust their priorities. Consumers are now spreading their discretionary spending across other lifestyle categories like fashion and home decor. As a result, beauty stores are experiencing softer in-store foot traffic, prompting brands to rethink how they attract and retain walk-in customers.
Sephora’s Foot Traffic Trends
Sephora has strategically expanded its presence through partnerships with retailers like Kohl's, establishing shop-in-shop experiences that have enhanced accessibility and convenience for shoppers. This initiative has contributed to increased foot traffic, with Sephora's U.S. stores experiencing significant growth in visits. For instance, in 2023, Sephora's foot traffic was 81.8% higher compared to pre-pandemic levels. This surge indicates the effectiveness of Sephora's collaborations in attracting a diverse customer base and enhancing the in-store shopping experience.
Ulta Beauty's Foot Traffic Trends
Ulta Beauty has also pursued partnerships, notably with Target, to create shop-in-shop formats aimed at providing greater convenience and access to beauty products. While these collaborations have initially boosted foot traffic, recent data suggests a moderation in growth. In 2024, Ulta's visit growth was just 1.9% year-over-year, a significant slowdown compared to previous years. This deceleration reflects broader industry trends and indicates potential challenges in sustaining high levels of in-store visits.
What's in Store for Beauty Retail in 2025?
The beauty retail landscape continues to evolve, with both Sephora and Ulta Beauty adapting to changing consumer behaviors and economic factors. Sephora's strategic partnerships have positioned it favorably in terms of foot traffic growth, while Ulta Beauty faces the challenge of revitalizing its in-store experience to re-engage its core customer segments. Both retailers have the opportunity to redefine their value propositions and leverage shifting consumer preferences to drive engagement and long-term loyalty in the beauty space.
