Per Retail Dive, Ulta is leaning into exclusivity and differentiated assortment as Target Beauty Studio competition enters the market, signaling a shift away from price-based competition into brand moat.
ReadingThe steal: when a competitor enters with lower price and similar selection, the escape is not lower price back—it's private label and exclusivity. Ulta is building a range of Ulta-exclusive beauty lines that exist only in Ulta stores, making price irrelevant. For a physical-product brand under competitive pressure, the move is to create a private-label variant that is only available through your channel or with your retailer, tying the buyer to you, not to the price.
MY STASH TAKEThis is old retail playbook, but it works because Target Beauty Studio is a real threat and Ulta can't win on price. So Ulta is playing a different game: exclusive formulas, exclusive brands, exclusive assortment. The buyer walks into Target for a dupe; she walks into Ulta because she can't get that product anywhere else. It's a brand moat, not a shelf moat. If you're facing a competitor who undercuts you on price, don't fight it—own something they can't carry.
WatchWatch for Ulta to announce in-house beauty brands or exclusive partnerships that deepen the exclusivity moat.