What's Happening?
Ulta Beauty is set to open its first store in the Middle East on November 7, marking its expansion into Kuwait. The store, located in The Avenues mega mall, will feature over 300 beauty brands, including new-to-Kuwait names like Morphe, Polite Society,
Kiko Milano, and Bella Hadid's perfume line Ôrəbella. This move follows Ulta Beauty's expansion into Mexico earlier this year and is part of a franchise partnership with Alshaya Group. The store will cater to a luxury-focused market, offering brands such as Tom Ford Beauty, Sisley, Burberry, and Augustinus Bader, alongside local beauty labels like Asteri Beauty. The launch event will include an appearance by Bella Hadid.
Why It's Important?
Ulta Beauty's expansion into Kuwait signifies a strategic move to tap into the fast-growing beauty market in the Middle East. The region is expected to see high growth in beauty sales, with consumers spending significantly more on beauty products compared to the U.S. market. This expansion allows Ulta Beauty to compete with established players like Sephora, which has been growing its presence in the region. By offering a mix of luxury and prestige brands, Ulta Beauty aims to differentiate itself and capture a share of the lucrative market. The move also highlights the increasing globalization of U.S. beauty retailers seeking growth opportunities abroad.
What's Next?
Ulta Beauty plans to open around 12 stores in the Middle East by 2026, with further expansions in the UAE and Saudi Arabia scheduled for early 2026. The company aims to be present in 80 locations across Gulf Cooperation Council countries by 2029. As Ulta Beauty continues its expansion, it will face competition from Sephora, which is also increasing its footprint in the region. Ulta Beauty's strategy includes significant marketing investments to build brand awareness and achieve a return on investment, emphasizing the importance of scale and smart growth in new markets.
Beyond the Headlines
The expansion into the Middle East reflects broader trends in the beauty industry, where companies are increasingly targeting emerging markets with high growth potential. The focus on luxury and prestige brands aligns with consumer preferences in the region, where there is a strong demand for high-end beauty products. This move also underscores the importance of cultural adaptation in global retail strategies, as Ulta Beauty adjusts its product offerings and store design to cater to local tastes and preferences.
