Ulta Beauty at CES: AI, Personalization & the Future of Retail
Las Vegas, NV – – Ulta Beauty is signaling a significant strategic shift, moving beyond its core retail operations and positioning itself as a technology-driven consumer experience company. The beauty retailer’s prominent presence at CES 2026, traditionally a showcase for consumer electronics, underscores this evolution, with a focus on leveraging artificial intelligence to deepen customer loyalty and personalize the shopping journey.
In a recent interview on The Speed of Culture podcast, Kelly Mahoney, Chief Marketing Officer at Ulta Beauty, detailed how the company’s loyalty program and personalization engine are now central to driving nearly all of its sales. This emphasis on data-driven insights represents a fundamental change in how Ulta Beauty approaches its market, moving away from traditional demographic targeting towards a more nuanced, motivation-based segmentation strategy.
“A consumer really starts to fall in love when they say, ‘Hey – you know me. You understand my needs,’” Mahoney stated, highlighting the importance of creating a personalized experience for each customer. This sentiment reflects a broader trend in retail, where relevance and emotional connection are increasingly valued over sheer reach.
Ulta Beauty’s loyalty program, boasting over 46 million members, currently accounts for approximately 95% of the company’s sales. This robust program functions as a continuous feedback loop, providing Ulta Beauty with invaluable data on customer behavior, preferences, and intent. The company is utilizing this first-party data to inform decisions across marketing, merchandising, and operations, effectively embedding personalization into the core of its business.
The shift towards motivation-based marketing is a key component of this strategy. Rather than categorizing customers based on age or gender, Ulta Beauty is now focusing on understanding why customers shop, how they discover products, and what drives their repeat purchases. This approach allows the company to anticipate customer needs and deliver more relevant recommendations, fostering a stronger sense of connection and trust.
Ulta Beauty’s expansion into the wellness category, formalized in 2021 with the launch of Wellness by Ulta Beauty, is also intertwined with this broader strategy. The company recognizes that wellness is no longer simply a product category but a holistic mindset influencing consumer behavior and self-care routines. By positioning itself as a trusted resource for both beauty and wellness, Ulta Beauty aims to attract new customers and strengthen its relationship with existing ones.
The company is also actively exploring the potential of artificial intelligence to further enhance the customer experience. Executives hinted at building AI agents to improve personalization for loyalty members, as reported at NRF’s Big Show in . CEO Kecia Steelman emphasized the potential of AI to leverage existing customer data and deliver product recommendations that feel tailored to individual needs, creating a “one-on-one” shopping experience.
Josh Friedman, Senior Vice President of E-commerce and Digital, revealed that Ulta Beauty is actively developing its own AI agents, though the specific roadmap remains in progress. This investment in AI underscores the company’s commitment to staying at the forefront of technological innovation in the retail sector.
Beyond customer-facing applications, Ulta Beauty is also leveraging AI to improve internal operations. The company is utilizing Adobe’s Customer Data Platform (CDP) and Firefly creative automation tools to streamline marketing processes and enhance content creation. This allows teams to produce more personalized content more efficiently, without compromising quality or brand consistency.
Mahoney emphasized that the successful integration of AI requires a workforce that is both curious and adaptable. The focus is not on replacing human employees with AI, but rather on empowering them with tools that augment their capabilities and allow them to deliver more meaningful experiences to customers.
Ulta Beauty’s strategic pivot reflects a broader trend in the retail industry, where companies are increasingly recognizing the importance of data-driven personalization and technological innovation. By prioritizing customer loyalty, embracing AI, and expanding into the wellness category, Ulta Beauty is positioning itself for continued growth and success in a rapidly evolving market. The company’s presence at CES 2026 is not merely a demonstration of technological prowess, but a clear signal of its ambition to redefine the future of beauty and wellness retail.