How Ulta Beauty is Leveraging Technology for Its Next Growth Surge

In 2025, Ulta Beauty is gearing up for some big changes, and technology is at the heart of it, according to Inna Larson, the company’s VP of IT strategy.

This year marks a major milestone as Ulta expands into Mexico. It’s also when the company will roll out four significant tech transformations across its operations.

Larson explained that these updates began with a multi-year tech strategy that wrapped up in 2024. Key changes included a complete overhaul of Ulta’s digital store platform, enhancing the virtual try-on feature, and providing tailored shopping experiences. Additionally, Ulta shifted its back-office processes to the SAP S/4HANA system, streamlining data management and improving reporting.

Moreover, Ulta revamped its data platform by merging various data sources into a single, powerful system, paving the way for artificial intelligence and machine learning. This positions Ulta to make quicker, data-driven decisions. They also organized their Google Cloud and Microsoft Azure assets into a unified model, enabling better supply chain and inventory oversight.

“Now that we have these solid foundations, we need to prioritize how to best utilize them,” Larson shared at NRF’s Retail Big Show.

She emphasized that Ulta aims to leverage these technological advancements to fuel international growth, drive digital innovation, and enhance personalization while increasing efficiency and profits.

In its third-quarter results for 2024, Ulta reported a revenue increase of 1.7%, reaching $2.53 billion. The company’s growth was credited to its popular loyalty program, which saw a rise to 44.4 million active members. Former CEO David Kimbell highlighted the effectiveness of improved marketing strategies and streamlined operations.

After her discussion at NRF, Larson chatted with Glossy about how Ulta is scaling up using technology, readying for potential challenges, and balancing innovation with profitability.

How Ulta Beauty is Using Technology for Growth
“We’ve made foundational changes that help us innovate. Strong foundations are key for growth. We now have the leading virtual try-on technology and an extensive virtual beauty catalog due to our unique business strategy.”

Larson also pointed out that Ulta transformed its marketing approach by partnering with Adobe, allowing for enhanced personalization throughout the customer journey. “Now, we can customize every step of the shopping experience,” she said.

Challenges Ahead
“Transformation isn’t easy, especially when it affects every store and employee. A key lesson for us is to prioritize effectively. While we have many tools at our disposal, we must focus on what enhances our customers’ experiences and boosts our team’s productivity without overwhelming them.”

She acknowledged concerns about artificial intelligence. “We must ensure that our technology maintains the high-quality service our guests expect, providing timely solutions while preserving the personal touch.”

Balancing Innovation and Profits
“Our leadership is both visionary and practical. We’re always seeking innovation, but we also look for operational efficiency that improves the bottom line. Innovations can range from data science applications that increase employee productivity to personalized services that drive sales.”

Ultimately, Ulta’s approach is about finding the right balance of innovation that optimizes costs while enriching customer experiences.

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