In a bold move signaling its first step into the European cosmetics market, U.S.-based specialty beauty retailer Ulta Beauty announced on Thursday, July 10, that it has acquired Space NK, a renowned British high street beauty chain. This acquisition marks a significant milestone for Ulta as it extends its footprint beyond North America for the first time.
While financial details of the deal remain undisclosed, Ulta Beauty’s purchase of Space NK from Manzanita Capital—who has owned the retailer for 23 years—reflects the company’s aggressive international expansion strategy, complementing its recent agreement to enter the Middle East with Alshaya Group by late 2025.
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Founded in 1993 in London’s Covent Garden, Space NK has built a strong reputation in the UK and Ireland for curating premium beauty and fragrance brands. The chain operates 83 retail stores across these markets, alongside a robust e-commerce platform. Post-acquisition, Space NK will continue to operate as a standalone subsidiary under its current management, including CEO Andy Lightfoot, ensuring continuity in its successful brand and operations.
Ulta Beauty President and CEO Kecia Steelman expressed enthusiasm about the acquisition, stating, “We are excited to enter the UK market via the Space NK banner. This is a unique and strategically compelling opportunity to tap into the growing UK beauty sector with an established and flourishing brand. Alongside our initiatives in Mexico and the Middle East, this acquisition builds a broader platform for long-term, profitable growth for Ulta Beauty.”
Ulta Beauty, founded in 1990, is the largest specialty beauty retailer in the United States, with 1,451 stores across all 50 states and a significant online presence. The company plans to fund the acquisition using cash reserves and available credit facilities, underscoring its strong financial position.
Rising Competition in the UK Beauty Retail Market
Ulta Beauty’s entry into the UK coincides with an increasingly competitive landscape. Sephora, a major global beauty retailer, relaunched its UK operations in 2023, intensifying rivalry for market share among premium beauty brands. The UK health and beauty market has exhibited steady growth, reaching EUR 53.6 billion (approximately GBP 45.4 billion) in 2024 after three consecutive years of expansion, according to data from analytics firm GlobalData.
Beauty products, particularly in the fragrance and cosmetics segments, are forecasted to maintain a compound annual growth rate (CAGR) of around 3% from 2023 to 2028. These categories are expected to surge significantly, with projected growth of 16% and 17%, respectively, during this period. Mintel’s data further supports this outlook, indicating a 3.8% increase in UK beauty spending in 2024, totaling EUR 7.75 billion (GBP 6.45 billion).
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Ulta’s acquisition of Space NK positions it well to capitalize on this expanding market, leveraging Space NK’s established customer base and premium brand partnerships. The company aims to blend its expertise in customer engagement and product assortment with Space NK’s local market knowledge to accelerate growth.
What’s Next for Ulta Beauty in Europe?
Ulta Beauty plans to maintain Space NK’s operational independence while exploring synergies that can enhance both companies’ competitive positioning. The deal fits into Ulta’s broader turnaround and growth strategy, which emphasizes expanding its international presence and diversifying revenue streams.
As Ulta prepares to launch stores in the Middle East by late 2025, the UK acquisition represents a crucial milestone in building a truly global beauty retail platform. This expansion strategy is expected to deliver long-term value to shareholders while offering consumers across multiple continents greater access to diverse and innovative beauty products.
Ulta Beauty has officially entered the UK market with its acquisition of Space NK, a leading British premium beauty retailer. This strategic purchase marks Ulta’s European debut and supports its global growth ambitions. Against a backdrop of rising competition and steady market expansion, Ulta plans to leverage Space NK’s strong UK presence to deliver enhanced product offerings and customer experiences while continuing its international growth push.
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