Ulta 2010 Annual Report Download - page 14

•Entertainment. The entertainment experience for our customer begins at home when she receives our
catalogs or visits our website. They are designed to introduce our customers to our newest products and
promotions and to be invitations to come to Ulta to play, touch, test, learn and explore. A significant
percentage of our sales throughout the year is derived from new products, making every visit to Ulta an
opportunity to discover something new and exciting. In addition to providing over 4,500 testers in
categories such as fragrance, cosmetics, skincare, and salon styling tools, we further enhance the shopping
experience and store atmosphere through live demonstrations from our licensed salon professionals and
beauty consultants, and through customer makeovers and in-store videos.
•Esthetics. We strive to create a visually pleasing and inviting store and salon environment that
exemplifies and reinforces the quality of our products and services. Our stores are brightly lit, spacious
and attractive on the inside and outside of the store. Our store and salon design features sleek, modern
lines that reinforce our status as a fashion authority, together with wide aisles that make the store easy to
navigate and pleasant lighting to create a luxurious and welcoming environment. This strategy enables us
to provide an extensive product selection in a well-organized store and to offer a salon experience that is
both fashionable and contemporary.
•Empowerment. We are committed to creating an environment in which women feel empowered by both
their inner and outer beauty; we take honor in providing our guests with opportunities to showcase how
they have empowered themselves and others. Ulta is committed to positively impacting the lives of
women through our work on empowerment initiatives such as the Ulta Enrich, Empower and Enlighten
Scholarship Fund which grants deserving high school senior girls scholarships to the educational
institution of their choice.
Category mix
We offer products in the following categories:
• Cosmetics, which includes products for the face, eyes, cheeks, lips and nails;
• Haircare, which includes shampoos, conditioners, styling products, and hair accessories;
• Salon styling tools, which includes hair dryers, curling irons and flat irons;
• Skincare and bath and body, which includes products for the face, hands and body;
• Fragrance for both men and women;
• Private label, consisting of Ulta branded cosmetics, skincare, bath and body products and haircare; and
• Other, including candles, home fragrance products and other miscellaneous health and beauty products.
Organization
Our merchandising team reports directly to our CEO and consists of a Senior Vice President of Merchandising
who oversees; Senior Vice President of Prestige Cosmetics; Vice President of Mass Cosmetics, Skincare and
Haircare; Vice President of Merchandise Operations; Vice President of Fragrance, Prestige Skin, Bath and Gift
with Purchase; Divisional Merchandise Manager of Salon Products; Divisional Merchandise Manager of
Styling Tools, and Director of Inventory. Reporting to the Senior Vice President of Merchandising are
approximately 23 Divisional Merchandise Managers, Senior Buyers, Buyers and Assistant/Associate Buyers.
Our merchandising team works directly with our centralized planning and replenishment group to ensure a
consistent delivery of products across our store base.
Our planogram department assists the merchants and replenishment team to keep new products flowing into
stores on a timely basis. All major product categories undergo planogram revisions once or twice a year and
adjustments are made to assortment mix and product placement based on current sales trends.
Our visual department works with our merchandising team on every advertising event regarding strategic
placement of promotional merchandise, along with functional signage and creative product presentation
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