Cosmetic and Beauty Supply Stores NAICS 456120

Jun 5, 2026 - Beauty Sales Grow Across Channels

• Prestige beauty sales rose 6% to $8.1 billion in the first quarter of 2026, while mass beauty sales increased 7% to $18.1 billion, signaling broad-based strength for the US cosmetic and beauty supply retailer industry, according to Circana data. The similar growth rates marked the first time in five years that prestige and mass beauty expanded at nearly the same pace. Fragrance, skincare, hair treatments, and personal care products led growth as consumers continued prioritizing self-care, wellness, and high-performing products. Retailers also benefited from the continued shift toward digital shopping, with beauty accounting for 20% of TikTok Shop spending and representing 10% of total beauty e-commerce sales. The results suggest retailers with strong omnichannel capabilities and exposure to high-growth categories such as fragrance, skincare, and hair care are well positioned for continued growth.
• Ulta Beauty's strong first-quarter results suggest the US cosmetic and beauty supply industry remains resilient despite economic uncertainty and inflation pressures. Ulta reported 11.1% sales growth to $3.16 billion, 5.3% comparable sales growth, and a 15.5% increase in earnings per share, with growth occurring across stores, e-commerce, and all major beauty categories. The retailer also gained market share in prestige beauty while maintaining its position in mass beauty, indicating broad consumer demand. Ulta's results point to continued consumer willingness to spend on beauty products, supported by loyalty programs, new product launches, and omnichannel shopping. However, management noted that consumers remain value-conscious due to inflation and rising fuel costs, while competition and promotional activity remain elevated. Overall, the earnings reinforce that beauty remains one of the more resilient retail categories, though retailers must continue balancing growth with pricing and value considerations.

• Ulta and Sephora are taking different AI strategies that could reshape US beauty retail, according to a Global Cosmetic Industry report. Ulta is moving fastest toward agentic commerce, embedding shopping directly into Google Search AI and Gemini so consumers can discover, compare, and buy products in one conversation. It is also using loyalty data and its own Ulta AI assistant to deepen personalization. Sephora is focusing earlier in the funnel, using ChatGPT primarily for beauty advice, recommendations, and loyalty engagement before enabling checkout. Together, the moves signal a broader shift for cosmetics and beauty supply retailers: consumers may increasingly shop through AI assistants instead of traditional search or retailer websites, making AI visibility, personalization and seamless checkout critical competitive advantages.
• Walmart and Target are redefining competition in US beauty retail through very different strategies, according to a report in The Street. Target and Ulta Beauty are ending their five-year partnership this summer, eliminating Ulta shop-in-shops inside Target stores and signaling a shift in how Target plans to use beauty space. Walmart, meanwhile, is expanding aggressively into beauty by adding Beauty Bars, dedicated beauty experts in 425 stores, and broader premium assortments. The moves increase pressure on cosmetics and beauty supply retailers as Walmart positions itself as a full-service beauty destination, competing more directly with specialty chains. The shift could intensify price competition, expand mass-market access to prestige beauty products, and force beauty retailers to differentiate through experience, loyalty programs and exclusive offerings as consumers become more value-conscious.