“We are excited to enter the U.K. market via the Space NK banner,” said Kecia Steelman, president and chief executive officer of Ulta Beauty.
Steelman's comments came as the U.S. retailer announced its acquisition of Space NK Limited from Manzanita Capital.
Financial terms of the transaction were not disclosed, but the acquisition follows a better-than-expected fiscal 2025 Q1 and slightly enhanced full-year guidance.
Space NK vs. Sephora: Competition Heats Up
Space NK operates 83 stores in the United Kingdom and Ireland and online, compared to nine stores currently operated by Sephora and 1,800 Boots shops in the U.K. market.
The Space NK acquisition allows Ulta Beauty to take on Sephora's growing strength in the U.K.
Sephora has made a name for itself in the U.K. market as the home of brands such as Merit, Rare Beauty, Tower 28 and Sol de Janeiro. Rhode will debut in the market later this year, following a U.S. launch at Sephora.
Sephora has also been busy opening new locations, including Meadowhall Sheffield this month. The retailer is also opening a location in Oxford in autumn 2025.
Space NK to Remain a Standalone Subsidiary
Under the new agreement, Space NK will operate as a standalone subsidiary of Ulta Beauty under its existing management team, including CEO Andy Lightfoot.
Of the news, Lightfoot noted, “We have long respected Ulta Beauty as the leading specialty beauty retailer in the U.S. We are energized and excited by the opportunity to join Ulta Beauty and benefit from its scale, brand relationships and resources to further fuel our mission to serve beauty obsessed consumers through expertise and innovation."
Ulta's UK Expansion Accelerates Overseas Push
The U.K.'s beauty and personal care market is forecasted to be worth $17.52 billion in 2025, per Statista, expanding at a modest 2.07% annually through 2030.
“International expansion is an integral part of our Ulta Beauty Unleashed plan, and the acquisition of Space NK offers a unique and strategically compelling opportunity to enter the growing U.K. market with a successful and growing brand," Steelman added. "Along with our initiatives in Mexico and the Middle East, we are creating a broader platform for Ulta Beauty to unlock long-term, profitable growth.”
Steelman continued, “Space NK’s management team, with the backing of Manzanita Capital, has done an excellent job building a differentiated beauty experience that inspires consumers through tailored product mixes. We look forward to working with the Space NK team to support their continued growth and success."
Bill Fisher, CEO and founder of Manzanita Capital, noted, “Space NK has been an important part of Manzanita Capital for the past 23 years. The acquisition of Space NK from Nicky Kinnaird was a key influence in developing Manzanita’s unique expertise in selecting and nurturing luxury and niche premium beauty and perfume brands.”
Fisher concluded, “I have every confidence that Ulta Beauty and this terrific management team will take Space NK to new heights."
