It’s easy to get caught up in the doom and gloom of brick-and-mortar retail, but not ALL retailers are failing. There are many retailers that are getting it right and reaping the benefits. Ulta falls into the getting it right category. The numbers speak for themselves—have a look.
The numbers according to L2 and Forbes:
- Ulta is currently the fastest-growing specialty retailer. Results were nothing short of spectacular in 2016 with sales jumping 23.7% and earnings per share soaring 30.9%.
- Sales last year were $4.9 billion up from $3.9 billion in 2016, beating expectations.
- Comparable sales jumped 15.8% driven by 7% growth in transactions and 5.1% in average ticket.
- Net income increased 28% to $409.8 million and income per diluted share increased to $6.52 per diluted share compared to $4.98 in fiscal 2015.
- Profits grew 16.6% year-on-year in the last quarter of 2016 while same-store sales grew double-digit for eight consecutive years.
- Ulta shares are growing faster than Amazon, up 70% year-over-year.
- Omnichannel is a large part of Ulta’s expansion plan, as its customers who shop online and in-store spend 2.5 times more than customers who just shop in stores.
- Contributing to the sales growth was strong e-commerce where comparable sales rose 56.2% to $345.3 million for the year, representing 240 basis points of the company’s 15.8% total comparable sales increase.
- The company opened 100 stores, ending 2016 with 974 units.
So, does your brick-and-mortar retail strategy fall into the glass half full or glass half empty category? Perhaps you need to reassess, because brick-and-mortar retail is not dead.