She might solely be three months into the highest job at Ulta Magnificence, however chief government officer Kecia Steelman is rapidly garnering a popularity within the trade as a quick, intentional and strategic choice maker, who has wasted no time making her mark on the retailer.
Already, she has made sweeping adjustments to the C-suite together with naming a brand new chief advertising officer, unveiled a technique referred to as Ulta Magnificence Unleashed, brokered a licensing deal to broaden the corporate into the Center East and is deep into negotiations for what the subsequent section of the partnership with Goal Corp. will appear like.
In between all this, the previous chief operations officer and president has not overlooked the significance of being boots-on-the-ground.
Right now, she’s in San Francisco, the place she’s briefly touched down for a board assembly for The Bay Membership, earlier than hopping over to neighboring state Arizona to go to some Ulta Magnificence shops in Scottsdale.
“I’ve at all times mentioned the solutions are on the market within the shops,” mentioned soft-spoken Steelman, who took the reins from Dave Kimbell in January. “I at all times take the chance to go to. The highest factor that I get to do is to pop into shops and see how issues are going and verify in on the groups. While you need to actually perceive the place we have now alternatives, the place we are able to get higher, go spend a day trip in shops.”
For Steelman, retail is in her bones. She started her profession in operations at Goal Corp. within the ’90s, then moved to House Depot and Household Greenback Shops. She views Ulta Magnificence’s military of associates as key to her plan to reinvigorate progress on the retailer, which is going through unprecedented ranges of competitors from the likes of Amazon, Sephora and others.
Certainly, Ulta Magnificence misplaced market share for the primary time in 2024 with web gross sales reducing 1.9 p.c to $3.5 billion in its fourth quarter, whereas it delivered worse than anticipated earnings steerage for 2025.
Steelman is assured in her technique, although, which incorporates launching an invite-only market and taking the corporate worldwide for the primary time. Later this 12 months, Ulta will debut in Mexico by way of a three way partnership with Axo, earlier than arriving within the Center East by way of a licensing settlement with Alshaya Group.
Requested if it feels totally different touring shops as CEO versus chief operations officer, Steelman says it doesn’t.
“I’ve at all times had such an awesome connection, and it’s actually genuine,” she mentioned. “That’s actually not modified since I’ve grow to be the CEO. The shop associates on the entrance line signify our model. They’re all the things to our firm. They get much more excited to see the CEO on the market. However me, myself, I really feel the identical”
You have got in depth retailer expertise from the very starting of your profession. How has this knowledgeable your considering as you rose by way of the ranks?
Kecia Steelman: While you begin on the entrance line in retail, you will have a extremely deep understanding of the patron and shopper engagement, and also you even have a greater appreciation for what these associates are experiencing within the retailer. I’ve been blessed to have had many ranges of management on the shop aspect and in addition throughout the company workplace. It was nice coaching floor for me because the CEO, as a result of you will have a real understanding and appreciation for the position everybody makes in making this firm what it’s in the present day.
Why did you select the operational aspect to start with?
Okay.S.: It selected me, to be sincere. I began working within the shops, and I used to be naturally actually good at it. I prefer to be somebody who’s very centered on controlling what I can management in an operations-type surroundings. That’s fairly nicely suited to my character and my ability set. I actually love that day by day could be very totally different within the operations aspect. It’s loads like sports activities. You is usually a winner sooner or later and the subsequent day you possibly can lose the sport, and it’s at all times on. You’ve bought to at all times put your greatest foot ahead and at all times be taking part in offense.
The operational aspect is historically extra male dominated. How was it rising up the ranks as a lady?
Okay.S.: It was very powerful, to be sincere. I used to be usually the one girl within the room and in loads of the conferences. I made loads of sacrifices. I missed loads of time with my youngsters, as a result of I used to be a younger mom and elevating my youngsters. I really feel very blessed that I’m able the place I’ve the flexibility to create a really totally different surroundings in the present day for our feminine associates who’re working for us. Some fast statistics that make this so particular, and what I need to at all times shield at Ulta Magnificence, is that we’ve bought 91 p.c girls working for us. Out of 58,000 associates, we’ve created 22,000 jobs since 2015 and we’ve elevated 6,000 girls into administration positions. All of the sacrifices that I made early on and rising up by way of these ranks and being one of many solely ones has actually ready me to make an enormous distinction on the planet of enterprise in the present day. A mind-blowing truth is that solely 2 p.c of Fortune 500 firms have a feminine CEO and a feminine CFO, and Ulta Magnificence is certainly one of them. I couldn’t be extra happy with that.
You’ve been at a number of the greatest retailers within the U.S. over the course of your profession. What are a few of your key takeaways?
Okay.S.: With Goal, I discovered early on the worth of constructing very numerous groups round you that had been higher than your self at totally different ability units. I discovered extra from the individuals who labored for me than I in all probability did even from the individuals I labored for. At House Depot, I brushed up on my enterprise and monetary acumen, as a result of I used to be a VP, GM at the moment, so I used to be working a P&L. And at Household Greenback, there was explosive progress within the greenback retailer phase after I was working there, and understanding the way you lead by way of giant progress cycles of shops, along with actually lean margins and profitability within the greenback sector, was instrumental.
At what stage in your profession was House Depot, as a result of everybody says it’s so essential to get that P&L expertise as a lady in enterprise early on?
Okay.S.: I used to be in my early 30s after I was getting that have, and comparatively early on. I really feel very blessed to have had that have and that publicity.
Lots of people within the magnificence trade describe you as quick on the subject of getting issues finished. What are essentially the most urgent priorities at Ulta Magnificence?
Okay.S.: I’m quick, however intentional. Quick with intention is what you should sustain with the tempo of change in magnificence and be a formidable competitor on the market in the present day. I additionally imagine in having actually clear and direct communication and ensuring that we’re leaning into our strengths. There are three key areas that I’m centered on. The primary one is driving the core enterprise. The second is scaling new and inventive companies, so extremely worthwhile companies that may assist proceed to leverage and add profitability to Ulta Magnificence. The final is continuous to align and lean into our basis for our future.
We’re a really financially steady firm that’s capable of proceed to spend money on our firm to maintain it related, and be sure that we’re the place that everybody desires to go for magnificence. Quite a lot of competitors is attempting to play in magnificence, as a result of magnificence has been such an awesome class in the previous few years. However what I’d say is, that is what we do. Magnificence and wellness is what Ulta Magnificence does. That is our candy spot. That is our core power, and because of this we belong being one of many high retailers.
In the newest earnings name, you famous that Ulta has gone by way of a slowdown. What would you attribute that to and what do you suppose must occur to reaccelerate progress?
Okay.S.: Any firm can undergo a cycle and a plateau. We’ve come off of quite a few years of very robust progress, and for us, it’s leaning into our core enterprise features and controlling what we are able to management. I’ve been doubling down on that. There are exterior elements that, after all, may very well be impacting the world of magnificence, however there are additionally issues that we are able to lean into to make what we’re doing even higher for the long run. I don’t spend loads of time centered on the issues that I can’t management. I attempt to hold the crew and myself very centered on the important thing attributes which might be going to make Ulta Magnificence profitable, not just for the quick time period, but additionally for the long run.
You’ve been constructing out the C-suite. Everyone seems to be determined to know who the chief merchandising officer is. Have you ever bought any replace on timing for that?
Okay.S.: I’m very excited to have the ability to share very quickly, and I do know everyone’s chomping on the bit figuring out who we’re placing in that position, but it surely’s an enormous place, particularly now that I put digital with it. We’re going after a top-tier candidate, and I imagine that’s what we’re going to land with: any person who is admittedly going to be unbelievable for Ulta Magnificence and in addition for magnificence as a complete. [On Thursday, after press time, Ulta Beauty named Lauren Brindley chief marketing and digital officer.]
So Monica Arnaudo, Ulta’s outgoing chief merchandising officer, didn’t have digital in her remit?
Okay.S.: We beforehand had digital with advertising. When Michelle [Crossan-Matos, Ulta Beauty’s former chief marketing officer] left, I made the transition to maintain advertising pure advertising, and since we’re wanting on the omnichannel visitor in a 360 method, I put digital and merchandising collectively. Proper now, whereas Monica continues to be within the position, Monica is main digital and merchandising, and the brand new chief will probably be main each digital and merchandising going ahead.
On exclusives, Ulta Magnificence scored a number of nice ones not too long ago, together with Beyoncé Knowles-Carter’s Cécred. Why is that this an essential piece of the technique and what model stage is your candy spot?
Okay.S.: Exclusives are actually essential, as a result of it additional differentiates us as a model. However I’d additionally say rising manufacturers are essential. I name them the three E’s. So it’s unique, rising manufacturers and established manufacturers. We’ve bought manufacturers like MAC and Clinique which might be actually essential to us as an organization, so it’s not simply our deal with exclusives. After we’re wanting on the pipeline for 2025, we’re enthusiastic about what we’re seeing for newness, as a result of newness is essential to us. About 20 p.c to 30 p.c of our gross sales come from newness, in order that’s the place we’re persevering with to lean into.
If you end up speaking to manufacturers about bringing issues in, particularly exclusives, what do you suppose Ulta can provide them that rivals can’t?
Okay.S.: The variety of factors of presence that we have now now that we’re additionally increasing globally, which I’m very enthusiastic about. Our launch into Mexico, into the Center East. The very fact we have now companies within the majority of virtually all of our shops. That service element actually brings the theater to life in a real, genuine approach. We’re very enthusiastic about doing that with Beyoncé’s model Cécred. We’re going to do an activation such as you’ve by no means seen earlier than at Ulta Magnificence. Our assortment is unparalleled. In order that’s a motive that you’d need to come be part of the Ulta Magnificence group as a model. Now we have the flexibility to additionally convert company into your model, as a result of we do carry throughout all these worth factors. Should you had been a status model and also you’d prefer to get a brand new shopper, I’ve bought a shopper that’s coming in already buying mass, and we are able to rapidly transition them into the next worth level class.
On the partnership between Ulta Magnificence and Goal, there are some stories that gross sales are slowing and that contract is because of finish this 12 months. Do you will have any replace on that?
Okay.S.: Company love Ulta Magnificence and Goal collectively, and we hold our company on the core of all of our selections that we make. Our focus is on how we make the idea much more fascinating and grow to be even higher for the company sooner or later.
However you don’t know but if the contract will probably be renewed?
Okay.S.: We’re in contract negotiations proper now.
Shifting on to worldwide growth, you will have Mexico and the Center East. Might you speak in regards to the plans for every of these areas?
Okay.S.: We’re on the brink of launch within the again half of 2025 for Mexico, and it’ll in all probability be within the later half of the 12 months for the Center East. For Mexico, it’s a three way partnership with Axo. We’re very enthusiastic about our partnership. The groups are working very nicely collectively. We imagine we are able to get 10 shops open in a reasonably quick time period. We’re aggressively taking a look at actual property areas, and the groups are simply doing a unbelievable job. That’s one factor I imagine Axo brings to the desk is their deep data of working retail in Mexico. And the patron is tremendous enthusiastic about that. Regarding the Center East, that’s really a licensed settlement that we’re doing with Alshaya Group. We’ve talked to Alshaya Group for fairly a while, and really feel like they’re a unbelievable accomplice for us to convey our model to life within the Center East.
Are you open to each forms of choices going ahead?
Okay.S.: Sure. What we’re centered on is having the appropriate partnership, and we’d prefer to have a accomplice. What we’re taking a look at is companions that may convey Ulta Magnificence possibly into a couple of nation so we don’t have 50 companions on the market. Now we have a smaller handful of key strategic companions to convey the model to life. However we’re taking a look at totally different nations. What’s the appropriate choice for us to have the ability to broaden in a extra asset-light approach, and to have the ability to broaden fairly rapidly?
So it’s honest to say globalization is essential for Ulta Magnificence proper now?
Okay.S.: Essential, however we are going to by no means take our eyes off the U.S. enterprise. The U.S. enterprise is the number-one significance for us at Ulta Magnificence.
Why are you launching a market?
Okay.S.: We’re working a closed market. It’s a must to be invited in. Now we have to just remember to’re going to be representing the Ulta Magnificence model. We’re taking a look at adjoining magnificence classes actually leaning into wellness, and we really feel it’s one other strategy to prolong our model and attain that magnificence shopper in the appropriate approach. I will even be watching it very intently, as a result of there may very well be objects that take off within the market that we might have by no means guessed, that we need to convey into our core assortment.
Will the invite-only element assist guard towards type of unauthorized distribution?
Okay.S.: Sure, completely. That’s very, essential to us.
Wellness is clearly an enormous a part of your technique. How do you propose to maneuver the providing ahead?
Okay.S.: You’re going to see us persevering with to broaden the assortment in retailer and on-line. We’re additionally going to be leaning into coaching and schooling with our affiliate base. Wellness is a class that may generally be a bit difficult to navigate, and generally it’s a really private class, so that you don’t know who to go to ask the questions of what merchandise try to be utilizing. We really feel that our associates being so accessible and so approachable and being seen because the specialists, that this will actually be a spot the place the patron can come and ask these powerful questions and we can assist them with all of their private wants.
Wellness can imply so many issues. What do you suppose it means for a magnificence retailer such as you?
Okay.S.: I have a look at classes like sexual wellness, private care, vitamin, sleep. While you really feel good on the within, it displays on the skin. It’s how one can assist the visitor be their best possible model of themselves. That’s what I name wellness, something that surrounds them and their lifestyle that may enhance their high quality of life and the way they really feel.
You’re certainly one of a handful of feminine CEOs and Fortune 500 having risen by way of the ranks; how do you suppose all firms can and will extra successfully nurture feminine expertise?
Okay.S.: We’ve bought to proceed to create alternatives for extra girls to have a seat on the desk to begin, after which you should create environments the place they really feel like they belong and that they’ve upward alternatives. One of many lovely issues I’m capable of do right here is pay it ahead, as a result of individuals paid it ahead for me. One of many high priorities I’ve on this job is creating alternatives for therefore many different girls. There’s nonetheless loads of work to do.
I need to proceed to be sure that I’m vocal, I’m weak. I share my story with others. If I may do it, they will do it too, and we speak loads about that at Ulta Magnificence.
What’s your favourite factor to do once you’re in a retailer?
Okay.S.: Speak to the associates and ask open-ended questions of what we are able to do higher for them, after which shut the loop with them and allow them to know what we’re doing. As a result of once they really feel like they matter and their voice issues, it makes all of the distinction on the planet. We’re solely as profitable as our groups on the market representing our model.
Have you ever ever gone in disguise as a buyer, as a result of everybody should know who you’re?
Okay.S.: I’ve tried, as a result of there’s been occasions the place I didn’t need them to know as a result of I didn’t have make-up on they usually nonetheless spot me!
What’s your management fashion?
Okay.S.: I’m positively a people-first chief. The signal of an excellent chief is once they oftentimes take a step again they usually let their crew have the middle stage. I actually strive to try this with my crew. They’re top-notch leaders. They’ve bought to be excellent at what they do. They’ve bought to have deep practical experience, be extremely collaborative with one another, they usually must play nicely with others on the crew with an enterprise mindset. When you will have all of that moving into, your whole leaders on the high, it filters by way of the whole group.
