Dive Brief:
- Skin care brand Tatcha will launch at all 1,400-plus Ulta Beauty stores and its website beginning on Jan. 1, per a company news release.
- Ulta will carry about 30 Tatcha SKUs on its website, including such moisturizing products as Water Cream and its top-selling Dewy Skin Cream.
- Tatcha products to be offered include a limited-edition travel size set consisting of a cleanser, two moisturizers, and a restorative lip treatment, priced at $49. Other Tatcha items include an overnight repair cream ($92), eye cream ($67), lip mask ($29), protective primer ($54) and a smoothing and firming moisturizer ($125).
Dive Insight:
The addition of Tatcha to Ulta’s beauty offering comes as the retailer works to regain share in the prestige space after facing increased competition.
Tatcha “is a trailblazer in the category, positioning skincare routines as something more than just a way to achieve your skin goals, but as a tool for self care,” Penny Coy, Ulta’s senior vice president of merchandising, said in a statement. “As we enter a new year, where beauty and mental well-being continue to be closely related and a priority for our multi-generational guests, we could not be more excited to welcome Tatcha to our family.”
Tatcha was founded by Vicky Tsai in 2009 and acquired by Unilever in 2019. It is part of Unilever’s prestige portfolio, which also includes Hourglass, Living Proof, Dermalogica, Kate Somerville, Murad and Paula's Choice.
"Everything we do at Tatcha is rooted in intention and purpose, and our approach to selecting retail partners is no different,” Mary Yee, Tatcha CEO, said in a statement. “I admire the values and principles that Ulta Beauty upholds, and its commitment to excellence and authenticity in delivering the best-in-class products to consumers.”
In its most recent quarter, Ulta notched a 1.7% year-over-year sales gain and raised its full-year guidance. But that follows a period where the retailer experienced slower sales and cut its guidance twice. Market share is being squeezed and Ulta has alluded to the fact that competitor Sephora is selling inside more than 1,000 Kohl’s locations, many of which are near its own stores. Sephora plans to be in 1,200 Kohl’s locations by 2025.
According to a recent report on beauty sales through Q3 from Circana, prestige skin care brands continue to grow although they are being outpaced by mid-range brands.
“Skincare was the softest growing category across U.S. department and beauty specialty stores through the third quarter, with dollar sales up 3%,” according to the report. “This performance was driven by a decrease in average pricing, as units sold grew faster – indicating that consumers are increasingly favoring lower-priced skincare product in prestige outlets.”
