Ulta Beauty

With few new grocery centers being built, developers are upping the ante on existing ones

Pat Donahue, together with his late brother Dan and business partner Tom Schriber, has been in grocery-anchored shopping centers since the ’90s. That’s when Schriber calculated that the company’s long-term fortunes, which had rested on mall development up until then, would be better wagered on high-traffic “necessity-based” retail.

“At malls you get ’em three times a month.

Ulta Beauty is expanding its popular Ultamate Rewards loyalty program.   The retailer is partnering with  Alliance Data Systems Corp. Alliance will develop and manage the Ultamate Rewards Credit Card, which is designed to enhance the benefits of the chain’s loyalty program.   Alliance will provide private-label and co-branded credit card services for Ulta, the largest beauty retailer in the United States, operating 886 stores nationwide.  

Macerich’s new outdoor shopping complement to Green Acres Mall in Valley Stream, N.Y., just got three steps closer to a full house for its planned grand opening this fall. 24-Hour Fitness, Sonic Drive-In, and Ulta Beauty have all committed to space at Green Acres Commons, a 335,000-sq.-ft. retail center.  

Ulta Beauty turned in what could be the best retail performance of the first quarter, posting strong brick-and-mortar and online growth and results that easily topped estimates. The company boosted its guidance for the year.    Ulta’s net sales for the quarter, ended May 2, surged 23.7% to $1.07 billion, up from $868.1 million in the year-ago period, and surpassing estimates for $1.03 billion. E-commerce sales shot up 38.8% to $61.0 million from $44.0 million last year.  

Photo: Andrea Olshan, CEO of Olshan Properties

New-build shopping center construction was plodding last year — discounting the outlet category, which continues to grow at record speed. And, yet, sometimes one has to look at the quality of what is coming out of the ground — or expanding — and not just the quantity.

The Momentum 2016 conference held by Manhattan Associates May 15-17 in Orlando, Florida offered attendees plenty of insightful sessions and interesting information about how omnichannel commerce is affecting the supply chain. First, let’s review some data points shared by Brendan Witcher, principal analyst, e-business and channel strategy, Forrester Research:

The fast-casual restaurant chain McAlister’s Deli has opened its first store in the New York City area, a market where residents know a thing or two about delis.