Prestige Brands Missing Out on Ulta?

Prestige brands that boost their distribution through Ulta could see strong benefits, according to a new analysis by L2.

The report notes that Ulta is opening 100 new stores each year and increasing its ecommerce sales from 4% to 10%.Yet mass brands are represented far more than prestige, meaning prestige brands could be missing an opportunity to grow with the retailer.

About two-thirds of mass brands assessed by L2 are sold at Ulta, compared to just over half of prestige brands.

"Search on is skewed in favor of mass brands, even though prestige brands are showcased more prominently," the analysis notes.

Mass brands also rule search visibility, keywords and reviews, according to L2. Expanding presence at Ulta could present a growth opportunity to many of the prestige brands currently missing out.

More in Brick and Mortar