Ulta Beauty completes phased store reopening post-coronavirus, reveals new stores including Canada debut
Ulta Beauty has completed its phased reopening process following temporary store closures in response to the Covid-19 pandemic, and has announced several future store openings and closings in its newest business update.
On July 20, the company said in a press release that has started bringing back temporarily furloughed employees "consistent with individual store operational needs," and has brought back approximately 50% of those furloughed in April so far.
With all stores reopened, the company said it will add to its current in-store health and safety policies by requiring all guests and associates to wear facial coverings when in stores.
After pausing plans for new stores in its first quarter, the company further announced it expects to resume new store openings in August and that it currently plans to open approximately 30 new stores in fiscal 2020. In 2021, Ulta said it plans to open even more new stores in the U.S. and make its first brick-and-mortar entry into Canada "with a number of stores."
After announcing plans to review all of its stores in June, the company said it also plans to permanently close 19 stores in the second and third quarter of 2020.
“We anticipate Covid-19 will influence longer-term market shifts and create new real estate opportunities, supporting our ambition to ultimately operate between 1,500 to 1,700 Ulta Beauty stores in the U.S.," said Mary Dillon, the company's chief executive officer.
"To do so, we are proactively optimizing our real estate portfolio and have made strategic decisions to temporarily reduce new store openings and close a limited number of stores this year. Overall, our real estate portfolio generates healthy returns, and this limited and targeted approach to closing stores will position Ulta Beauty for even stronger financial performance in the future.”
Ulta will announce second quarter financial results on Thursday, August 27, 2020, after the market closes.
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