Retail Report: Rhode’s Sephora Era + Ulta’s Big Space NK Buy

Summary

Gloss Angeles Podcast Episode Summary

Title: Retail Report: Rhode’s Sephora Era + Ulta’s Big Space NK Buy
Release Date: July 15, 2025
Hosts: Kirbie Johnson and Sara Tan

---

1. Musical Nostalgia and Media Evolution (00:34 – 10:38)

The episode begins with Kirbie and Sara diving into a nostalgic conversation about '90s music and the evolution of media consumption. Kirbie reminisces about listening to "OG jams" from the '90s, including Eli's "Girl of Your Dreams" (01:01), which transports her back to her cheerleading days. Sara contrasts her preference for supporting public radio with Kirbie's reliance on Spotify, sharing a humorous incident where her Google Home switched to children's content unexpectedly (01:22).

They discuss the decline in DJs' autonomy, lamenting how modern radio often restricts playlists to current Billboard hits, unlike the more curated and diverse selections of the past (02:04). Kirbie shares fond memories of "jock jams" and their role in her childhood competitions, highlighting how specific songs like "Everybody Dance Now" by CNC Music Factory were integral to her cheerleading routines (02:47).

The conversation shifts to technological advancements in music sharing and dance learning. Both hosts express nostalgia for the manual recording processes of the past, which required creativity and perseverance, compared to today's seamless digital tools. They reflect on how these changes have influenced their appreciation for entertainment and creativity, with Kirbie mentioning her struggles to find joy in modern media (07:34).

Notable Quotes:

• Kirbie (02:04): “I really wish that DJs would have more autonomy to play what they want to play versus having to play certain things that are dictated by the charts.”
• Sara (05:00): “I feel like now I am getting older and this is what happens, but I don't find joy in anything usually anymore.”

---

2. Retail Report: Rhode’s Sephora Entry (11:00 – 18:24)

The hosts transition to their main segment, discussing Rhode's recent entry into Sephora. They reference insights from Rachel Strugatz of Puck, who reports on Rhode's strategic placement within Sephora stores (11:34). Rhode’s inclusion is expected to reshape the beauty landscape, potentially impacting established brands like Rare Beauty.

Kirbie highlights a report indicating that Rare Beauty experienced a 2% drop in profit share at Sephora over the past year (12:55). She questions whether Rhode and Rare are direct competitors, noting that Rhode primarily focuses on skincare with a makeup line, whereas Rare is more makeup-centric (14:08). This distinction raises questions about how Rhode’s presence will affect other brands such as Summer Fridays, Saie, and Tower 28, which occupy similar skincare-makeup hybrid spaces (15:02).

They speculate on Rhode’s merchandising strategy within Sephora—whether Rhode will have standalone gondolas, end caps, or integrated sections—and the potential for Rhode to either support or cannibalize existing brands. The hosts draw parallels with Charlotte Tilbury’s 2018 Sephora launch, which significantly disrupted the market by overshadowing established brands (16:56).

Notable Quotes:

• Kirbie (12:32): “It's not gonna be in the, like, upcoming section that only has, like, the four SKUs.”
• Sara (15:00): “It's very much like similar model and similar customer.”

---

3. Retail Report: Ulta’s Acquisition of Space NK (18:24 – 25:00)

Moving on, Kirbie and Sara discuss Ulta Beauty's acquisition of Space NK, a prestigious UK-based beauty retailer, for an estimated £300 million (18:34). This acquisition marks a significant expansion for Ulta, potentially paving the way for their entry into the UK market.

They explore the implications of this deal, considering Space NK’s reputation for luxury and exclusive brand offerings versus Ulta’s more mainstream and mass-market presence. The hosts ponder whether Ulta will maintain Space NK’s distinct brand identity or integrate it into their broader portfolio, potentially altering the shopping experience for loyal Space NK customers (19:56).

Insights from UK beauty editors reveal that Space NK is known for its premium shopping experience and exclusive brands, which may contrast with Ulta’s extensive and more accessible product range (22:00). They discuss the potential benefits of this acquisition, such as expanding online offerings and introducing exclusive brands to a wider audience, while also addressing concerns about maintaining Space NK’s upscale reputation (23:21).

The hosts also reflect on the challenges of merging two distinct market segments and the potential for Ulta to leverage Space NK’s exclusive brands to enhance their global footprint. They question how this acquisition will affect consumers, particularly regarding product availability and the preservation of Space NK’s unique brand experience (23:28).

Notable Quotes:

• Sara (19:56): “There's so many questions, but I think ultimately everyone's pretty excited about this.”
• Kirbie (21:40): “It's a weird partnership. But then again we also thought the Chanel partnership with Ulta was weird.”

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4. Conclusion and Future Outlook (25:00 – End)

The episode wraps up with Kirbie and Sara expressing anticipation for how Rhode’s integration into Sephora and Ulta’s acquisition of Space NK will unfold. They emphasize the dynamic nature of the beauty retail industry and the importance of staying informed about these significant shifts. The hosts look forward to future developments and plan to continue analyzing the impacts of these major moves on the beauty landscape.

Summary:

In this episode of "Gloss Angeles," Kirbie Johnson and Sara Tan provide an in-depth analysis of two major developments in the beauty retail industry: Rhode’s entry into Sephora and Ulta Beauty’s acquisition of Space NK. Through thoughtful discussion and expert insights, they explore the potential impacts on existing brands, market dynamics, and consumer experiences. The episode offers a comprehensive overview of how these strategic moves could reshape the beauty landscape, making it a valuable listen for beauty enthusiasts and industry insiders alike.

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Notable Quotes from the Episode:

• Kirbie (02:04): “I really wish that DJs would have more autonomy to play what they want to play versus having to play certain things that are dictated by the charts.”
• Sara (05:00): “I feel like now I am getting older and this is what happens, but I don't find joy in anything usually anymore.”
• Kirbie (12:32): “It's not gonna be in the, like, upcoming section that only has, like, the four SKUs.”
• Sara (15:00): “It's very much like similar model and similar customer.”
• Sara (19:56): “There's so many questions, but I think ultimately everyone's pretty excited about this.”
• Kirbie (21:40): “It's a weird partnership. But then again we also thought the Chanel partnership with Ulta was weird.”

---

This comprehensive summary captures the essence of the episode, highlighting key discussions, insights, and notable quotes to provide value to listeners and those who haven't tuned in yet.

Transcript

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[Kirby]

Glam Los Angeles.

[Sarah]

Hi Kirby.

[Kirby]

Hi, Sarah.

[Sarah]

Welcome to Los Angeles.

[Kirby]

So I've been listening to a lot of OG jams, okay. From the 90s. Love that today I was driving.

[Sarah]

Do you listen to the Wave?

[Kirby]

I don't listen to the radio anymore because I just have my Spotify.

[Sarah]

I got dragged for that. But here's also why I listen to the Radio 1, because I love supporting radio, especially public radio. But my Spotify account is connected to our Google home. So like Kaden the nanny are listening to like Elmo and I can't listen to it in the car. So if I'm listening to my Spotify, all of a sudden it turns to Elmo.

[Kirby]

Yes.

[Sarah]

So that's a reason why. But sorry to interrupt. I was just saying the wave. Great 90s jams.

[Kirby]

I do love public radio and I really wish that DJs would have more autonomy to play what they want to play versus like having to play certain things at different what are not studios.

[Sarah]

Like what's on the like Billboard charts.

[Kirby]

Yes.

[Sarah]

And like.

[Matt]

Yeah.

[Sarah]

And also like DJs back in the day, just totally different than Kasey Kasem.

[Kirby]

Is a lot different from some of these DJs now that are just like playing Tate McCray over and over. It's like they had taste and they'd be like, we think this is gonna be a bop. There's this. The reason why I'm thinking about this is cause when I was driving here, I was listening to this single from an artist named Eli.

[Sarah]

Okay.

[Kirby]

And she has the song called Girl of youf Dreams. It is very 1998 in your bedroom watching TGIFs.

[Sarah]

Love.

[Kirby]

It's such a good song.

[Sarah]

Is she sampling like an old song or just giving the vibes?

[Kirby]

It just gives the vibe.

[Matt]

Okay, okay.

[Kirby]

And so then that got me thinking about what I was listening to in 1998. And jock jams was such a huge part of my life. I don't know if the children know about jock jams, but there was this compilation CD similar to now that's what I call music.

[Sarah]

I hope that would be.

[Kirby]

But it was all like high energy music. You would hear, like, a basketball game.

[Sarah]

Uh huh. Uh huh.

[Matt]

Yep.

[Kirby]

Or like, a baseball walkout song. One of the songs on the first volume is Everybody Dance now by CNC Music Factory.

[Matt]

Yep.

[Kirby]

That song is integral to Kirby as a child, and it says a lot about me, if you know me, because I was a competitive cheerleader and there were competitions.

[Matt]

Yes.

[Kirby]

And one day, we were watching man of the House with Jonathan Taylor Thomas and Chevy Chase.

[Matt]

Okay.

[Kirby]

And I was best friends with the daughter of the cheer coach.

[Matt]

Okay.

[Kirby]

And so she and my mom were friends, and we were over and talking and hanging out, watching man of the House. Whatever. And there is a scene in man of the House where Jonathan Taylor Thomas, Chevy Chase, and a bunch of other people do a rain dance, and they're wearing featherhead dresses. It's a whole thing. I think it's not appropriative because there was an indigenous person that was involved in the movie, but I am completely blanking on it. Yeah.

[Matt]

Okay.

[Kirby]

And he told them if they need rain, to do a rain dance. So I think he actually did teach them the rain dance. Okay. So not total appropriation, but a bunch of white people.

[Sarah]

Well, that's big for rain dance for the 90s, though.

[Kirby]

Yeah. For, like, 1996.

[Sarah]

Quite thoughtful.

[Kirby]

Yeah. So they do this dance to Everybody Dance now. And it was like a light bulb went off, and we danced to that song for our cheer competition. I still know the dance moves. Like it is in my head.

[Sarah]

Forever ingrained.

[Kirby]

It's forever ingrained. And I was asking my mom, when you hear Everybody Dance now, what do you think of? And she's like, you're cheerleading competition. Duh. Just burned into our brains now. So, yeah, that took me to, like, Tatiana Ali's daydreaming.

[Sarah]

I did a dance to that in my talent show.

[Kirby]

Wow.

[Sarah]

And we did a mix which is, by the way, like, so advanced that we even edited it back then. I don't know how we did it. So we did it was that. And then, Aaliyah, you know how we did it?

[Kirby]

You took a blank cassette tape. Oh, yeah.

[Sarah]

Then you played it, and then you.

[Kirby]

Put in the cd, and then you played it, and then you paused at the right moment, and then you picked it up, and there was some kind.

[Sarah]

Of something in there, but it still worked.

[Matt]

It worked. Yeah.

[Sarah]

What a good time. Like, what do the kids do now?

[Kirby]

I know. It's too easy. It's too easy. I do see some kids doing these mashups. Like, there is this incredible One Direction mashup on TikTok. That I was like, I don't know who or how old this person is, but it was an incredible mashup of, like, every single one of their hits.

[Sarah]

Love that.

[Kirby]

And it was three minutes long. And I'm like, are they using pro tools? Like, what are they using to accomplish this?

[Sarah]

I mean, at the very minimum, they have GarageBand on their laptops, and they're all pros at that, so.

[Kirby]

God, I would have died to have something like GarageBand.

[Sarah]

Same.

[Kirby]

Matt, remember when NSync would release a new single and you had to literally sit by your radio and get ready to record it, and you had, like, the last few words of the DJ saying something before the song started.

[Sarah]

Totally.

[Kirby]

You had no idea how the actual song even started.

[Sarah]

And that's. And that intro is, like, forever ingrained in my head as part of the song.

[Kirby]

Yes. It's like Johnny Blaze 96.7 KHFI. Now Kiss FM literally being like, and here's NC2 single. And then you get into Bye Bye Bye. And then when you get the actual CD or you see them perform it on the Rosie o' DONNELL show, you're like, wait, there's a whole string section at the beginning of the song.

[Sarah]

Totally. I was actually thinking about that recently because I saw one of NSync's performances on the Today show, and it reminded me of how, like, I would strategically try to record it.

[Kirby]

Yes.

[Sarah]

And then, like, you know, it's like, if you were at school, then you'd have to ask, like, your mom to record it. It's just like.

[Kirby]

Because you weren't gonna be able to see it.

[Sarah]

No, there was no way.

[Kirby]

You couldn't.

[Sarah]

Like, TiVo was very much. That was, I think, before TiVo. So you couldn't record it. Like, we literally had to. My mom doesn't have them anymore. But, like.

[Kirby]

Cause like, VHS tapes. Yes.

[Sarah]

VHS tapes.

[Kirby]

Yes. And if you wanted to learn a dance, you watched Darren's dance crew.

[Sarah]

Yes.

[Kirby]

Which was the authority.

[Sarah]

Or rewinded it and then pressed it again.

[Kirby]

Yes. Or literally, you were recording, like, the big help performance of NSYNC doing Bye Bye Bye to learn the dance moves. And you had all these different angles of the different performances. So you're like, wait, I thought it was this, but I think it's actually this now.

[Sarah]

This is how we spent summers.

[Kirby]

I mean, I think it really helped us in a way. It taught us perseverance. Yes. We had to persevere. Critical thinking being like, we got more information. Now we have to change the steps.

[Sarah]

Limited resources.

[Kirby]

Exactly. Limited resources. Yeah, I liked that we didn't have everything at our fingertips.

[Matt]

Yep, yep.

[Kirby]

Now I feel like, literally now I was telling my girlfriends when I went on my fourth of July trip that I'm like, I just. Like, I don't know if I just am getting older and this is what happens, but I don't find joy in anything usually anymore. I'm just like, I'm not happy. Like, I'm like, no things that used to bring me joy. I'm like, the only thing that brings me joy is my dog. I get on my phone and I'm like, why am I on this? I hate everything. Everything's the same.

[Sarah]

I think there's a lot of. Yeah, like, definitely age related, for sure. Like, we're def. You know, we're a little bit more jaded. A lot more jaded. And then it's just like the world around us is crumbling and the news cycle is depressing, and then even our entertainment is boring.

[Kirby]

There's nothing interesting anymore. It's, like, very rare to find something that's totally different and still interesting.

[Sarah]

You're loving Love island, are you not? Or is that just more like you're watching it as sort of a reality show, Sociological, like, projects. Like, you're analyzing them.

[Kirby]

I do love it. And I'm not saying that it's not entertaining, but it's not different. It's a competition dating show. You know what I mean?

[Sarah]

Like, you want something fresh, fun fresh.

[Kirby]

And like, if you're scrolling through your feed, I find that when I see people that are doing branded content with a partner, like, I want to support them. Like, I know how hard it is to get your stuff totally. In an algorithm when you have that paid partnership tag or an ad hashtag.

[Sarah]

Yeah, you, like, always, like, leave a comment, share it.

[Kirby]

I don't care. Like, literally send it to yourself. But so I always try to engage, but I see the people doing it and I'm like, I don't think you actually like doing this. Like, I. I think you hate that.

[Sarah]

You have to do this in your eyes.

[Kirby]

No, it's like the most mundane.

[Matt]

Yeah.

[Kirby]

Regurgitated line of copy I've ever heard in my life. And I'm like, this is not.

[Sarah]

But I think that's also coming from the brands, right? Like, not trusting, like, to give freedom, creative freedom to the influencer or content creator.

[Kirby]

Like, I want brands to just let us be fucking unhinged.

[Matt]

Yeah.

[Kirby]

Let us be unhinged. When you listen to Ride with Benny and Mary Beth, my mouth is agape. Half the time listening to their ads. They're so funny.

[Sarah]

But I remember them.

[Kirby]

But I remember them. And then I'm like, I cannot believe that this advertiser was okay with them, like, talking about how Benny literally has the flu and is, like, dying and just threw up. Like, you know what I mean? I mean, but I remembered it totally. I don't remember most of the ads.

[Sarah]

I remember all their ads because they're so entertaining. It's like quints.

[Kirby]

Hill House.

[Sarah]

Hill House Home article.

[Kirby]

Hill House Home has, like, fans of the podcast. Like, I know all of their advertising. Squarespace.

[Matt]

Yeah, yeah.

[Kirby]

Ag. Even AG1. AG1. I will never use AG1.

[Sarah]

But what's the VPN?

[Kirby]

Yeah, the VPN.

[Matt]

Yeah.

[Kirby]

There's the OCD. Oh, yes, yes.

[Matt]

Yep.

[Sarah]

The app. No, it's great.

[Kirby]

Yeah. This is proof of concept for ride.

[Matt]

Yeah.

[Kirby]

Just saying. Not like they needed it, but we remember all their advertisers.

[Sarah]

Truly, it works.

[Kirby]

Brands just let people be effing crazy. Truly. I think that it will pay off in the long run.

[Sarah]

No, for sure.

[Kirby]

Because people know that the person you're partnering with isn't the brand.

[Matt]

Yeah, yeah, yeah.

[Sarah]

No, totally. But it is.

[Matt]

Yeah.

[Sarah]

To your point. It's a little boring. Things are a little boring right now and depressing.

[Kirby]

Okay, well, you know what's not. You know what's not boring? Is that we have some more road news.

[Sarah]

I'm waiting for my new phone case.

[Kirby]

Okay, well, mine came in today.

[Sarah]

Oh. Oh, wait.

[Kirby]

It's a kimchi giant box.

[Sarah]

Oh, my God. Excited.

[Kirby]

Very excited about it. Rhode is doing their summer club, by the way. I think that's, like, the hot thing. Summer clubs. I saw Chanel has a summer club.

[Matt]

Yes.

[Sarah]

Which I think Chanel's, like, always done their, like, summer trip with these influencers. But of course, Rhode is just, like. It's on another level for their marketing.

[Kirby]

Majorca.

[Sarah]

And then there's, like, a charitable aspect to it.

[Kirby]

Oh, is there?

[Sarah]

Yeah, they're, like, donating money to. I can't remember what organization. Which I was like, that's really smart.

[Kirby]

Oh, I didn't see that.

[Sarah]

Because you're flaunting. You know, it's like this rich and famous lifestyle, but smart.

[Matt]

Yeah.

[Sarah]

They're giving back.

[Kirby]

So I think this is probably their first trip that they've ever done. Rogue.

[Sarah]

They got that elf money. Okay.

[Kirby]

But that is not what we're talking about today. So friend of the pod. She's never been on it, but we consider her friend of the pod. Rachel Strugatz @ Puck had A really interesting story about Rhode going into Sephora and what this means for a lot of different beauty brands already there. Of course, it's Rachel Strugatz. So she brought up the road versus rare beauty drama.

[Sarah]

I saw the Instagram post, and the photo is Haley, and then Celine is right behind her. And then someone in the comment was like, must you pit these two women against each other?

[Kirby]

Well, a lot of the story revolves around how RHER stands to not benefit from road entering, and it kind of goes through how road is gonna be positioned. This is something you and I have kind of talked about. Like, okay, what category is it gonna be? What's it gonna look like? Is it gonna be on its own standalone gondola? Is it gonna be an end cap? Is it gonna be. It's not gonna be in the, like, upcoming section that only has, like, the four SKUs.

[Sarah]

No.

[Kirby]

Cause, like, that's like a little block wall with, like, you know, smaller brands.

[Sarah]

Also. Imagine all of the people coming in. That's like, there's just gonna be mobs of people.

[Kirby]

Totally.

[Matt]

Yeah.

[Sarah]

Trying to touch the product.

[Kirby]

Totally.

[Sarah]

So.

[Kirby]

So I'm really interested to see how they're going to, like, evolve this road world at a Sephora, but while also.

[Sarah]

Keeping everyone else happy.

[Kirby]

Right, right, right. So Rachel kind of goes through how Rare lost, I think, like 2% of its. Not market share, but its share of, like, profit at Sephora in the past year.

[Matt]

Okay. We.

[Kirby]

Which is kind of surprising given how much they do sell in terms of Blush and.

[Sarah]

Yeah, I was gonna say, does it credit it to a specific category? Cause I know they're technically. And this may not still be the true, but they technically are the leaders in the Blush category. Right.

[Kirby]

Yes.

[Sarah]

Okay.

[Kirby]

And so a lot of the conversation in this. It's not even a conversation, it's just a report. And Rachel was able to verify, like, that 2% drop through yip data, her favorite site that she loves to go on. She references it almost like every single story. But I thought it was interesting because I don't think I know that Rare clearly in the story they have lost, they have gone down a little bit. Okay. But I don't think that Rhode. They're such different brands to me. Like, I do not think of them as straight competitors at all. I think of Rhode is skincare mostly with a makeup offering, and I think of Rare as truly just makeup.

[Sarah]

Yeah, me too.

[Kirby]

And cosmetics. Cosmetics.

[Sarah]

So.

[Kirby]

And I know they've entered, like, the body care category, but, like, obviously that's not, like, a huge part of their business. I think that. Or maybe it is. I don't know. But I think, like, the cheek is obviously, like, the entry point for a lot of people, and they have that liquid option they now have. Well, they have the powder option. They had the powder highlighter option. Basically. They have, like, exhausted the entire blush category.

[Matt]

Yes.

[Kirby]

And so I think that's interesting. It'll be interesting to see where they go next.

[Matt]

Yeah.

[Kirby]

But I'm actually wondering how brands like Summer Fridays, Saie, Tower 28, like, how are they going to fare? Because I feel like those brands, even though Saie is definitely makeup, specifically Summer Fridays and Tower 28 are skincare brands that have a makeup offering.

[Matt]

Yep.

[Sarah]

It's very much like similar model.

[Kirby]

Yes.

[Sarah]

And similar customer.

[Kirby]

Yes.

[Sarah]

Where it's like, every skin type can use us. Right. It's, like, gentle for people, even with eczema or rosacea, even. I think Saie, like, isn't part of their tagline, like. Well, I guess at this point everyone is, but it's like, like a skincare makeup hybrid, you know, where it's like, there are skincare ingredients in the makeup products.

[Kirby]

Yes. It's for everybody.

[Sarah]

Exactly.

[Kirby]

So I'm more curious. I'm not that worried about rare. I think Rare has. I mean, they're literally celebrating their fifth anniversary this August with a new lip gloss. They have a new lip gloss.

[Sarah]

What's the point of differentiation for the lip gloss?

[Kirby]

I don't know.

[Sarah]

Okay. I don't tried it yet.

[Kirby]

I haven't either. But I think that brands like Summer Fridays, Tower 28, say, even merit in some regard.

[Sarah]

Totally.

[Kirby]

I'm really curious to see if this is going to help them because, like, what happens? What about, like, Kosas or, like a Kosas?

[Matt]

Okay.

[Kirby]

What happens when Rhode island doesn't have any peptide lip treatments in stock? The cast member is going to go, okay, what about Summer Fridays? You know, have you tried this option? Have you tried Kosas Blush? Have you tried Ses, water setting powder?

[Sarah]

Whatever.

[Kirby]

Have you tried this moisturizer from Tower 28, that type of thing? So I feel like it stands to actually help some of these brands. But I also understand, too, how it could cannibalize a lot of them as well. Because clearly this is going to be the darling. It's going to be the brand that. That's new and shiny and great. Rachel mentioned in her story that this was kind of akin to when Charlotte Tilbury finally entered Sephora in 2018, that it just, like, all hell broke loose because they ended up, like, pushing out the top brand at the time, I think it was like nars. And there was one other one that I'm like completely blanking on because she came in and kind of just took over.

[Matt]

Yeah.

[Sarah]

I would love to believe that there is a world where all can exist and everyone favors and does well. But ultimately if a 15 year old girl comes into Sephora and has $30 to spend and can only pick one product. Yeah, yeah, it's, yeah, she's gonna have to choose. And right now it's probably gonna be Rhode. It's like, you know, it's exciting. It's, you know, like you said, it's, it's, it's sexy. It's the shiny new toy. I would love to, if we could talk to some of these founders and people from the brands, like anonymously. Because I have heard anonymously and sort of off the record from a couple of them who are like, yeah, I'm worried. But again, we'll see, we'll see. When do they enter the stores?

[Kirby]

We don't know yet.

[Sarah]

Okay.

[Kirby]

Sometime they said fall.

[Sarah]

Okay.

[Kirby]

But we don't have an exact date. So I'll be curious to see how this either helps or detracts from everybody else's business. I'm also really curious to see like how they're going to merchandise it. Like what products are actually going to be in store.

[Matt]

Yeah.

[Sarah]

And again, where is it going to be? Like you said, at the front on a gondola. Oh.

[Kirby]

The other important thing to note is that in her story, Rachel specifies that Rhode will be under skincare. It's not going to be a cosmetic offering, which I think will help, especially when it comes to reporting with some of these brands it makes sense. Like Rare started as skincare, they have more skin care.

[Sarah]

They have Peptide Beauty cosmetics.

[Kirby]

Right.

[Sarah]

That makes sense.

[Kirby]

Right?

[Matt]

Yeah.

[Kirby]

So.

[Sarah]

Huh.

[Kirby]

I know. Interesting. Can't wait to see what happens.

[Sarah]

Can't wait. Wow. Okay, some other big beauty news across the pond. So Ulta Beauty has acquired Space Nk.

[Kirby]

Huge. Huge.

[Sarah]

Shocking. Like wow, wow, wow, wow, wow. Okay, so this is a story from Sky News. So it says Sky News has learned that Ulta Beauty, which operates close to 1500 stores, is on the verge of a deal to buy Space NK from existing owner Manzanita Capital. Ulta Beauty is understood to have registered an acquisition vehicle at Companies House in recent weeks. The exact price being paid by Ulta was unclear on Thursday morning, although one source said it was likely to be well in excess of £300 million. Manzani Capital, private investment firm, engaged Bankers at Raymond James to oversee an auction in April 2024. The firm has owned Space NK for more than 20 years. Manzania has also owned the French perfume house Diptyque and Susan Kaufman, an Austrian luxury skincare brand. So I feel like the initial reaction was like, holy shit, this is incredible, especially for UK consumers because they've been wanting to get Ulta in the UK and this is like a good sign, right, that that could be a possibility. But it's also really interesting because it's like two totally different markets. Like Space and K is very luxury, it's like prestige. And obviously Ulta Beauty is what they call over there high street brand. So you know, it's, it's, it's the more affordable products. So I was like, what does this mean? One, does it mean that Ulta Beauty is coming to the uk? Will they like take over some of the Space NK stores? Is there going to be like a shop in shop scenario or does this mean that they'll expand space in K more and then have some offerings of brands that Ulta Beauty carries that is not in the UK yet? Like there are so many questions, but I think ultimately everyone's pretty excited about this.

[Kirby]

So I had similar questions. Firstly, I was just talking to somebody about how Space NK has this offering that you can't get here in the U.S. right. These brands that, you know, when we.

[Sarah]

Go over there, we're buying.

[Kirby]

That's what we're buying. And I know that before Ultraviolet was available here in the us I was constantly linking people to, I think Space NK potentially Liberty about, you know, trying to acquire those products. So for me I'm like, okay, does this mean that those brands now are going to be somehow lumped in to the US version? Like I kind of have like the opposite thought of.

[Sarah]

Interesting. Okay. You're like, are they going to bring.

[Kirby]

A shop and shop here.

[Matt]

Yeah.

[Sarah]

Of a space in K and Ulta.

[Kirby]

Right. And I know that obviously Ulta is trying to increase their global footprint similar to Sephora. I know that they operate in Mexico and I can't remember the other country that they operate in, but this is obviously going to take it like to the next level. I have some questions again, like you said, because Space NK is so luxury, it's not like they're not carrying these more mass brands like an Ulta does.

[Matt]

Yeah.

[Kirby]

So it does feel like a weird partnership. But then again we also thought the Chanel partnership with Ulta was weird. And now it's like my favorite part of going to the Frisco Texas, totally store.

[Sarah]

Right, right. And like Sephora and Kohl's or Was it also JCPenney? Were they in JCPenney? They were. Right?

[Kirby]

Yes.

[Matt]

Yeah.

[Sarah]

But okay, so I, I asked a couple of our beauty editor friends across the pond what their thoughts were since they're intimately familiar with Space NK and Venus Wong, who's on the beauty team. My refinery in London said to me, Space NK has always been associated with a premium shopping experience featuring a selection of brands that skews more upscale. Whenever I shop at a Space NK store, I know I won't be accosted by a bunch of teens. If you know, you know, the samples are typically in good condition and are nicely topped up. And in some of the bigger locations, they even have bouncers at the entrance. I feel like that Ulta has a slightly more mass presence in the U.S. given that they have such a strong presence at shopping malls. I can't speak for the online shopping experience at Space NK as I haven't bought online there, but I can imagine it does slightly lag behind Cult Beauty and Look Fantastic, which are both leading online retailers in the uk. It's not top of mind as a destination for me if I need to buy something online. And then Jacqueline Kilikita, who's also on the beauty team, Venus was referencing her. She said, Jackie and I were also talking about how it's not super competitive at bringing exclusive new brands to the UK market. For example, Ariana Grande fragrances are at an are an Ulta exclusive in the us but the UK exclusive went to Boots. I think Ulta can make a big potential difference in that case, bringing its vast resources to level up the e commerce aspect and leverage its network of brands.

[Kirby]

Yeah. So I saw people in the comments saying of this particular story, I wonder if Sacred is now coming to the uk.

[Matt]

Yeah.

[Kirby]

And for me, I'm like, okay, can we get some of these UK only European brands in the US without having to pay $30 for shipping.

[Matt]

Yeah.

[Kirby]

So it'll be really interesting to see how they expand if they are going to end up like, will Space NK as a name be gone?

[Sarah]

Right, Exactly.

[Kirby]

Because this is an acquisition. This isn't a partnership.

[Sarah]

Totally.

[Matt]

Yeah.

[Sarah]

And although Space NK is such an institution, what I am hearing from Jackie and Venus, they're both like, we don't really shop at Space nk. Like we. It's not a place that we go to. And maybe you would liken that to like, how I don't know if your mom still like loves to shop at a department store, but I know my mom does for makeup. Like not to say that like Nordstrom isn't a place that you know beauty is happening. But like I feel like it just is a little bit of an older demographic.

[Kirby]

Yeah. And for Nordstrom, I don't go to Nordstrom specifically for beauty. I'm there for clothing or shoes. And then beauty isn't afterthought. It kind of reminds me of revolve. I look on Revolve to see what they have and then if I'm checking out they're like throw in this lip gloss.

[Sarah]

Right, right. But like 25 years ago I loved shopping beauty at Nordstrom.

[Kirby]

Right.

[Sarah]

And I know that like it's still a familiar place for like my mom. And I know I talked to my mother in law about it. She just like still loves to go to Nordstrom and talk to like I mean the associates. Beauty associates. So anyways, it's really, really interesting. Very interesting move.

[Kirby]

Curious to see how it's all going to play out. I'm sure we'll get more details soon.

[Sarah]

Yeah.

[Kirby]

But also kind of sounds like from this story and I think we actually did report this. It says Manizita Capital, a private investment firm, engaged bankers at Raymond James to oversee an auction in April 2024. So was, wasn't there news that Space NK was like bankrupt or something? Yes. Okay, so surely Ulta got a deal. They got a good deal so that it will actually survive.

[Matt]

Yeah.

[Sarah]

Okay, bye.

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