Ulta Beauty enters UK market with Space NK acquisition

Ulta Beauty has acquired Space NK and entered the UK market. The deal is part of the US retailer’s international expansion strategy and gives it immediate access to Space NK’s established retail footprint across the UK and Ireland.

The acquisition is funded through Ulta’s cash reserves and credit facility. Financial terms were not disclosed, but reports suggest the value could exceed £300 million (US$405 million).

Until now, Ulta has operated solely in the US, with approximately 1,450 stores. The Space NK acquisition gives the company an immediate foothold in Europe’s competitive beauty market, bypassing the cost and risk of building from scratch.

The UK expansion coincides with upcoming Ulta store launches in Mexico, Kuwait, and Dubai, UAE. Ulta’s international expansion aims to drive long-term, sustainable growth across multiple regions. 

The new acquisition aligns with the company’s “Ulta Beauty Unleashed” strategy, which was introduced after a sales decline at the end of 2024. However, the US company has been regaining financial momentum and reported a 4.5% year-on-year increase in net sales in its latest quarterly results, amounting to US$2.8 billion. 

According to Ulta, the acquisition transaction will not materially impact its fiscal 2025 financials nor other capital priorities, including its ongoing share repurchase program.

Ulta enters new orbit

Space NK was founded in 1993 and sold to private investment firm Manzanita Capital in 2002. The retailer offers a curated selection of prestige and luxury beauty brands. Under CEO Andy Lightfoot, the company has followed a hyper-local expansion model, opening stores in high-traffic areas including London’s Oxford Street and Birmingham, UK.

Despite market challenges, Space NK has grown its revenue from £11.8 million in 2021 (US$15.9 million) to £195 million in 2024 (US$263 million).

The acquisition offers Ulta instant scale and local credibility in an established market with heightened competition from global players, such as Sephora, Flannels Beauty, and Harrods’ H Beauty. These retailers have all expanded their UK presence in the past year, underscoring the region’s focus on prestige beauty.

Space NK has followed a hyper-local expansion model, with stores in high-traffic areas including London’s Oxford Street.“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,” says Ulta CEO Kecia Steelman.

Bill Fisher, Manzanita Capital’s CEO, also expresses confidence in Ulta’s ability to develop the business further.

Integration with independence

The US company will operate Space NK as a standalone subsidiary, keeping its leadership and branding intact, but integrating it into Ulta’s global infrastructure and supply chain network.

For Space NK, the partnership provides access to greater resources and broader innovation pipelines, particularly as the retailer eyes further store openings in 2025.

The British retailer has suspended its US shipping operations due to ongoing tariff-related complications, but its UK and Irish operations have stayed on a stable growth trajectory.

The company focuses on postcode-specific retail and consumer personalization, which has helped it maintain relevance amid growing competition and shifting shopper habits.

Meanwhile, according to Ulta, its lifted Q1 performance was fueled by strong demand for affordable beauty among younger consumers, exclusive product launches, and a sharpened focus on in-store experiences and digital campaigns.

The acquisition comes as the global beauty landscape evolves due to economic uncertainty, shifting consumer loyalty, and increasing digitization.