Ulta is betting $400 million that an NYC megastore will help it compete with Sephora—and that flagships still work

Ulta Beauty is investing $400 million in a 27,000-square-foot flagship store in New York City's Times Square to compete with Sephora and test the retail flagship model. The store aims to showcase upscale house brands, enhance experiential retail, and serve as a testing ground for new products and marketing. Ulta, which expanded to Mexico and the Middle East, seeks to differentiate itself in a competitive beauty market dominated by Sephora.