Ulta Beauty angers customers as announcement quickly turns messy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Ulta Beauty, one of the most prominent beauty retailers in the U.S., has frustrated its customers as it faces increased demand and rising competition.

During the third quarter of 2025, Ulta Beauty’s comparable sales increased by 6.3% year over year, according to its most recent earnings report. The average amount customers spent per purchase spiked by almost 4%, while the number of transactions in stores rose by 2.4%.

Ulta Beauty also saw customer visits in its stores climb by 3.3% year over year during the quarter, according to recent data from Placer.ai, which was shared with TheStreet.

The increased demand comes at a time when more Americans nationwide are prioritizing self-care and wellness, despite recent economic pressures, a survey from Bread Financial and Ulta Beauty found last year.

U.S. consumer attitudes on beauty and wellness:

Approximately 74% of U.S. consumers, mainly younger generations, are prioritizing self-care and wellness in their beauty rituals.
Also, 46% of consumers use beauty products as a means to feel happiness, calm, and self-fulfillment.
When it comes to personal care and grooming products, men spend an average of $90 per month on these items, while women spend an average of $80. Sources: Bread Financial, Ulta Beauty

“Despite economic uncertainty, beauty spending remains resilient, particularly among Gen Z and Millennials, and men, who are outpacing women in their beauty and grooming purchases,” said Valerie Greer, chief commercial officer at Bread Financial, in a press release.

As this trend grows, the beauty and personal care market in the U.S. is expected to generate a revenue of roughly $108 billion this year, growing by 2.80% annually, according to data from Statista.

Ulta Beauty recently saw a spike in sales, despite current economic headwinds.

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Ulta Beauty event faces backlash from customers

To tap into this increased consumer demand, Ulta Beauty launched a one-day immersive beauty event called Ulta Beauty World, where consumers can purchase tickets to interact with hundreds of brands, view expert masterclasses, meet beauty influencers, sample products, and receive free, high-value “swag bags” that feature full-sized products.

The event first debuted in San Antonio, Texas, in April last year, and this year it is set to take place in Orlando, Florida, on April 16.

However, the event is drawing outrage from Ulta Beauty fans after tickets for the convention, which start at $160 (plus a $5 processing fee), sold out within minutes on Jan. 21.

“Tickets are sold out,” said Ulta Beauty in an announcement on its website. “Wow, the hype for Ulta Beauty World is real! If you couldn’t grab a ticket this time, we’re already counting down to next year. Hope to see you there!”

Many consumers took to social media platform X to express frustration at not being able to purchase a ticket to the event, with some claiming the ticket rollout was a “scam.”

Allegations are also circulating online that the majority of the tickets went to beauty influencers. One TikTok user, who claims to work in cybersecurity, even alleged in a viral video that the source code for the online queue to purchase tickets to the event shows that invite codes were “pre-generated before the ticket release,” suggesting that some people may have had exclusive access to tickets.

“#UltaBeautyWorld tickets were a complete joke. You had everyone waiting in a queue for an hour just to sell out in seconds. That’s not a “drop,” that’s a cash grab stress test. DO BETTER @ultabeauty,” wrote one Ulta Beauty customer on X.

“Ulta Beauty World was a straight-up scam. Poor planning, poor execution, and tickets wasted on influencers who don’t need any more free makeup. Boo. @ultabeauty,” wrote another customer on X.

“Ulta beauty world is such a scam… it’s clearly an event for influencers only! Waited in line for a whole hour and NOTHING. They won’t be getting my money,” claimed another.

One Ulta Beauty customer, named Rosy, even started a petition on Change.org, which has so far gathered over 100 signatures, demanding that the beauty retailer create separate events for customers and influencers.

“As a dedicated Ulta Beauty customer, I, alongside hundreds of others, took time off work hoping to experience the magic of Ulta Beauty’s convention,” said Rosy in the petition.

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“We believed it was an opportunity where loyal customers like ourselves would get a chance to explore the latest beauty trends and products in an intimate and inclusive setting,” she continued. “However, we were significantly disappointed to discover that a substantial number of tickets were gifted to influencers, leaving many genuine customers without a chance to attend.”

Ulta Beauty responds to customer outrage

Amid the backlash, Ulta Beauty said in a post on social media platform Threads that more than 3 million people lined up to purchase tickets, while only 3,000 were for sale.

In a statement to TheStreet, an Ulta Beauty PR representative said that demand for Ulta Beauty World surpassed the company’s expectations.

“Despite doubling the number of tickets available compared to last year, Ulta Beauty World tickets sold out almost immediately due to demand that far exceeded our expectations,” said the representative.

They also clarified that tickets to the event “were allocated separately and did not reduce inventory available to the general public.”

“We’re truly grateful for the excitement our community continues to show around this event,” the representative added. “We know not everyone was able to secure a ticket, but we’re already looking ahead to how we can expand access for next year.”

In a recent Instagram post, Ulta Beauty also said that customers should “stay tuned,” since there will be upcoming chances to win tickets to the event.

Ulta Beauty struggles to beat top competitors

Frustrating customers is a risky move, especially after Ulta Beauty made a harsh change in its stores. The retailer recently implemented several price increases in its stores due to tariff pressures, a move that threatens to drive away price-conscious customers.

Ulta Beauty is also operating in a challenging environment as it faces fierce competition from Amazon, the top beauty retailer in the U.S., according to a recent report from Market Defense.

To keep its customers from fleeing to Amazon, Ulta Beauty even launched its own online marketplace in October, a move that expanded its brand assortment.

Amazon isn’t the only growing threat to Ulta Beauty. Market research company IBISWorld shared key data with TheStreet, indicating that in the brick-and-mortar beauty, cosmetics, and fragrance retail sector, Ulta Beauty holds a 15.3% market share. However, it falls behind Sephora, which has 18.3% market share.

Despite their dominance, Ulta Beauty and Sephora lag behind competitors in the physical retail space when it comes to resonating with beauty shoppers, according to a recent survey from ChangeUp.

Top physical retailers U.S. beauty shoppers say understand them:

Nordstrom takes the top spot, with 79% of beauty shoppers saying that the retailer understands them.
Approximately 76% said Macy’s and Bath & Body Works, while 75% said Aveda.
Only 73% said Ulta Beauty and Sephora understand them. Source: ChangeUp

“Today’s beauty customers still rely on physical retail, yet feel increasingly alienated by environments that don’t reflect their needs,” said Lynn Gonsior, chief operating officer of ChangeUp, in a press release.

“Retailers have been chasing the loudest signals, and the oversight of some of their most valuable customers is costing them,” she added. “Real loyalty isn’t built on trend-chasing, it’s built on understanding your customers.”