In today’s unpredictable retail environment—marked by inflation, supply chain disruptions, and rapidly shifting consumer preferences—the beauty industry faces pressure to either evolve or risk irrelevance. At BeautyMatter’s 2025 FUTURE50 Summit, co-founder and President John Cafarelli sat down for a candid fireside chat with Ulta Beauty’s new CEO, Kecia Steelman, to unpack what it takes to lead the future of beauty retail.
“We’re all facing challenges,” Steelman acknowledged. “But the companies that are going to survive and continue to grow are the ones that are willing to pivot and be agile.”
Steelman brings a rare blend of operational expertise and cultural empathy to her role. “I actually grew up in retail,” she said, referencing her first job as an hourly associate on a shop floor. Steelman’s later career included leadership roles at Target, Best Buy, and Family Dollar, as well as 10 years at Ulta Beauty, where she was previously positioned as Chief Operating Officer and Chief Store Operations Officer.
“I’ve had the opportunity to work in every part of retail, including big-box, discount, and electronics. I’ve run stores and distribution centers,” she said. “That really gave me a very grounded perspective.” Steelman’s motivation to join Ulta Beauty came from its values. “What really attracted me to Ulta Beauty was the people-first culture,” she explained.
That people-first culture, combined with Ulta Beauty's sharp focus on the customer, is foundational to its omnichannel strategy. “Our guests want convenience. They want value. And they want to be inspired,” Steelman said. “That’s really where we start.”
This guest-centric mindset informs Ulta Beauty’s evolving in-store experience, from thoughtful store layouts to seamless digital integrations. “People still want that in-store experience,” Steelman explained, “but they also want a digital experience. We’ve worked hard to bring those two together in a very frictionless way.”
Even with innovation at the forefront, Steelman is clear about intention. “We don’t just innovate to innovate,” she said. “We innovate because we’re solving problems. We innovate because we’re thinking about what the guest needs today and tomorrow.”
One such innovation is the company’s intensified focus on wellness—a category Steelman says is now integral to beauty. Ulta Beauty is expanding its in-store wellness sections to all 1,385 stores, up from the current 460 locations. “We see wellness not just as a trend, but truly as a lifestyle,” she said. “Our guests are asking for products and experiences that help them be the best version of themselves—mentally, emotionally, and physically.”
This includes everything from sleep aids and stress-relief tools to ingestibles and intimate care. Yet Ulta Beauty’s mission remains constant: to help guests feel confident and seen.
“We want to make sure that everyone sees themselves in our stores and on our shelves,” Steelman emphasized. This goal drives Ulta Beauty’scommitment to BIPOC-founded brands, inclusive shade ranges, and merchandising that elevates underrepresented voices.
At the heart of this success is what Steelman calls Ulta Beauty’s “secret weapon”: culture. “We always say, ‘Culture eats strategy for breakfast,’” she noted. “It’s not just a phrase on the wall. It’s how we lead every day.”
Ulta Beauty‘s leadership lives that ethos by engaging closely with store teams. “We’re not sitting in some ivory tower making decisions,” she said. “We’re out there with our teams.”
And the listening extends beyond store associates. “Insights come from everywhere,” Steelman said. “You’ve just got to ask and be willing to listen.”
Leadership development is another key focus.Ulta Beautyinvests in mentorship and succession planning to prepare future leaders. “We’re not just developing leaders for Ulta Beauty—we’re developing leaders for the industry,” she said. “If we’re not investing in our people, we’re missing the mark.”
That investment is paying off. “When our associates feel valued, they show up differently—and that energy shows up in the guest experience,” she added.
Despite its strengths, Ulta Beauty hasn’t been immune to setbacks. In 2024, the company reported a market share loss due to internal technology write-downs. “That was a tough call,” Steelman admitted. “But it was the right call. We learned from it. And now, we have even more clarity.”
That clarity is evident in Ulta Beauty’ssustainability push. The Conscious Beauty initiative simplifies complex product claims and helps shoppers make informed decisions. “There’s so much confusion in the market today,” Steelman said. “We wanted to create a framework that cuts through that noise.”
With rigorous standards around clean ingredients, sustainable packaging, and community impact, Ulta Beauty is driving lasting change. “This isn’t about chasing trends,” she noted. “This is about true transformation.”
Ulta Beauty’s global vision is also coming into focus, beginning with expansions into Mexico and the Middle East. “We believe the Ulta Beauty experience can resonate globally,” she said. “But we’re being very thoughtful in how we do it.”
A curated digital marketplace is also on the horizon—an initiative designed to give emerging brands more visibility and scale. “This will allow us to test and learn in a low-risk environment and bring in newness quickly,” Steelman shared. “It gives brands the ability to reach our guests in a way that doesn’t have to go through the traditional merchandising path.” It’s also a strategic growth lever. “This is going to be a great way to incubate brands and potentially bring them into the full Ulta Beauty ecosystem.”
Looking ahead, Steelman emphasized the importance of adaptability. “We may not get it perfect,” she said. “But we’re going to keep trying. That’s what matters—progress over perfection.”
As the beauty industry navigates an era of transformation, Steelman’s people-first, purpose-driven approach offers a clear path forward. “When you lead with purpose,” she concluded, “everything else falls into place.”
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