Ulta Doubles Store Fulfilment Network as AI Helps Scale E-Commerce Operations

Ulta Beauty significantly expanded its store fulfilment footprint in fiscal 2025, doubling the number of US locations able to ship online orders from around 500 to more than 1,000. The move reflects a broader trend among major retailers that are increasingly treating stores as active fulfilment nodes rather than just points of sale.

According to the company’s latest SEC filing, the expansion was supported by the rollout of an AI-powered order management system designed to improve fulfilment optimisation. Chief executive Kecia Steelman told analysts in March that the technology helped the company scale its ship-from-store capabilities more efficiently during the year.

While its number of regional distribution centres and smaller fulfilment sites remained unchanged, Ulta is also building a new distribution centre in the northwestern US. That facility is expected to improve both network capacity and order speed.

The strategy mirrors moves by other large retailers. Walmart recently reported strong growth in store-fulfilled deliveries, while Target said its stores have fulfilled more than 97% of total merchandise sales in each of the past three years. For Ulta, the logistics push comes alongside continued commercial momentum: fourth-quarter net sales rose 11.8% to $3.9 billion, while full-year fiscal 2025 sales grew 9.7% to $12.4 billion.

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