When news broke that Ulta Beauty was acquiring UK luxury beauty retailer Space NK, it turned more than a few heads. Was this a no-brainer move for the US retail giant, or a surprising shift? Read on as I share my insights as a beauty retail insider having worked as Head of Beauty Buying at Selfridges and with some major beauty retail players such as Ocado, NEXT, Fenwick and more. Read on the understand my thoughts on the motivations behind the acquisition, the potential pitfalls, and what this means for the global beauty retail landscape.

First Impressions: An Expected Move?

At first glance, the deal feels familiar. As with Sephora’s acquisition of Feelunique and Oh My Cream’s move on Naturisimo, buying an established UK player is increasingly becoming the go-to route for international retailers looking to crack the competitive UK beauty market.

Rather than building from the ground up, Ulta gets an immediate foothold. And not just any entry, Space NK brings a highly curated, loyal customer base and a deep understanding of UK consumer preferences. This isn’t just about growth; it’s also a strategic play to remove a potential competitor from the landscape while learning what makes British beauty customers tick.

Is This a Positive Move for Ulta?

All signs point to yes, but with caution. Ulta has made no secret of its international ambitions. This move allows them to “test the waters” with a prestige brand that already has traction in the UK. But as we've seen before, acquisitions can stir backlash. Cult Beauty’s acquisition by THG, for example, sparked criticism from both customers and brands who disliked the operational changes post-takeover.

So the big question is: will Ulta give Space NK the autonomy it needs to maintain its unique voice and customer loyalty, or will it impose its own structure too quickly? Time will tell.

What’s In It for Space NK?

In short: capital, infrastructure, and global opportunity. Space NK has already been expanding rapidly in the UK, launching larger store formats and focusing on customer experience. This partnership could further accelerate that growth, with access to Ulta’s backend tech, supply chain muscle, and operational scale.

It also opens the door for Space NK to revisit international expansion. Its previous ventures in the US, standalone stores and a Walmart partnership had limited impact. With Ulta's support, a more coordinated re-entry into the US (or other markets) becomes far more viable.

Synergies: A Two-Way Street

There’s plenty each retailer can learn from the other.

From Space NK to Ulta:

Space NK is leading the way with experiential retail and in-store activations that drive urgency and exclusivity.
Its hyper-local model, flagship city stores balanced with strong regional footprints, could inform Ulta’s future UK or international formats.

From Ulta to Space NK:

Ulta’s operational power, particularly in supply chain, tech platforms, and buying power, can further establish and scale Space NK’s backend and profitability.
Ulta can introduce US-dominant brands to the UK market via Space NK as exclusive launches, while UK and European brands can do the same to Ulta’s vast US network.

This kind of cross-pollination, especially through brand exclusives, is what creates differentiation in an increasingly saturated beauty retail landscape.

Final Thoughts: Prestige is the Power Play

This deal also signals one broader trend: prestige beauty is thriving. And Ulta, with its high–low mix of prestige and mass, is positioning itself to ride that wave.

By backing a retailer that lives and breathes luxury curation, Ulta strengthens its ability to compete with Sephora, not just in the US, but globally.

If executed well, this acquisition could be the blueprint for future cross-market retail partnerships: shared knowledge, shared infrastructure, and shared growth.
If Space NK keeps its autonomy and both parties bring their best to the table, this could be one of the strategically savvy beauty deals in recent years.