Ulta x SpaceNK

The Beauty Industry Is Consolidating, Ulta x Space NK Is Just the Beginning

Another week, another beauty acquisition. As of yesterday it was announced that Ulta Beauty is acquiring Space NK, a beloved British beauty retailer with a cult following and carefully curated product mix.
For me, this story is personal: I started my beauty career at Space NK, and it’s a brand I’ve always admired for its taste-level, integrity, and leadership in the prestige space. Though SNK have changed how they do things in recent years. They have been able to stay relevant and ahead of the curve (something which many have failed to do).

So why sell? Any why now? This deal is part of a much bigger trend: the increasing consolidation of the beauty industry. Ulta, the U.S. giant with 1,400+ stores, gains access to the UK market Space NK, the beloved UK boutique, gains resource to grow in the US while keeping its unique identity intact. However, Ulta is known for mass market approach powered by big loyalty numbers and budget beauty brands. Space NK is all about edit: tight curation, premium brands, elevated in-store experiences.

Can these two worlds merge without one diluting the other?

Over the past few years, the industry has seen:

  • Estée Lauder acquiring Deciem (The Ordinary)

  • L'Oréal acquiring Aesop

  • Elf acquiring Rhode Beauty

  • Sephora (owned by LVMH) expanding globally at pace

  • And now, Ulta entering the UK market via Space NK

What does this mean for the industry:

  • The middle ground is shrinking, winning brands are either niche or massive, budget or premium

  • Shelf space is power, and being part of a retail empire might soon be a requirement for survival

Space NK taught me so much about what makes a beauty experience special. This deal is a sign of where beauty is heading: faster, bigger, and increasingly consolidated.

Let’s hope brands can scale without losing soul.

Giada Citro