Amazon Offers Professional Beauty Store, Causes Fall of Ulta Beauty

America’s multi-tech and retail company Amazon announced the launch of Amazon Professional Beauty Store, offering professional stylists and aestheticians beauty supplies for spas and salons.

On June 24, 2019, the company has unveiled its newest section, where beauty experts can order supplies online for a convenient shopping experience. Director for Customer-Driven Experience Steve Kann said, “We are pleased to offer those in the professional beauty industry even more selection through the convenient shopping experience our customers love on Amazon Business.”

Kann also highlighted that Amazon is offering great prices for different products partnered with convenient delivery options. “Stylists can free up their time to focus on what’s important: customers,” added Kann.

In an article published by Reuters, it is said that this new move of Amazon has caused the fall of Ulta Beauty and Sally Beauty. Shares of Sally Beauty Holdings sank for 17 per cent while Ulta Beauty’s shares fell about 3 per cent.

The downfall has been unexpected, just like Amazon’s move to have an online pharmacy, which caused the downfall of CVS, Walgreen and McKesson Corp. Billions of market value were lost during this time.

Amazon is known to provide a wider selection of products at cheaper price tags. The company has its own products and every year, it is developing newer sections for customers. CBD products can also be purchased on Amazon and sooner or later, the company will have to tap on this market.

Meanwhile, Amazon is not just offering beauty products but also styling tools for the hair plus cosmetics.

Sally Beauty’s investors are reportedly disappointed with the continuous fall down of stock value, approximately 20 per cent since earlier this year. Meanwhile, Ulta is still striving and while stock shares are falling, value is still intact.