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If you’re feeling anxious about the economy, you’re not alone. Consumer confidence is at its lowest in more than a decade. Americans are worried about inflation, a possible recession, and job securityand that anxiety is reshaping how they spend. Even high earners are pulling back. Households are cutting big-ticket indulgences like vacations, fine dining, and designer fashion and redirecting spending toward essentials like groceries and personal care. Even then, theyre choosing retailers that feel like smart value plays. Higher-income shoppers have increasingly frequented discount chains like Walmart and Costcoboth of which have seen record-breaking quarters. Ulta is poised to win in this economy. Since its founding in 1990, Ulta has specialized in selling mass-market beauty products, with some luxury brands sprinkled in. Walking the aisles, you’ll find a $12 Maybelline foundation across from a $190 bottle of Chanel No. 5 perfume. Were very focused on being inclusive, and we want to be a destination for everyone, says Ulta CEO Kecia Steelman. We can take care of your beauty shopping needs no matter what your budget is. In a booming economy, that kind of mixing can feel unglamorous. Aspirational shoppers tend to gravitate toward retailers like Sephora or Nordstrom, where everything signals luxury. But for most people, this isnt a boom time. As consumers tighten their belts, Ultas flexibility starts to look like a feature, not a flaw. The retailer now draws shoppers across a wide income rangefrom households earning around $50,000 annually to those making well into the six figures. Budget-conscious customers can stock up on brands like E.l.f. and CoverGirl. Affluent shoppers, meanwhile, can trade down on basics while still splurging occasionally on Drunk Elephant skincare or a Dior lipstick. This approach is working. As overall retail spending has slowed, Ulta has grown over the past several quarters and is tracking to $12.3 billion in revenue for the last fiscal year, up roughly 4.7% from the year before. Its in-store visits have also climbed 3.3% year over year. Other retailers focused on a mix of low prices and premium products, including Walmart and Costco, are also gaining momentum. These trends point to a broader shift. The era of aspirational positioning is fading. This is a trade-down economy, and the retailers best positioned to weather it are the ones that adapt to that reality. [Photo: Ulta] The Aspirational Economy Is Over For the past decade and a half, we’ve been living in an aspirational economy. During this time, a new generation of brands popped up that allowed you to buy not just a product, but an identity. Startups like Allbirds, Casper, Away, and Glossier used sleek design and clever storytelling to signal good taste, high status, and progressive values. They were a ticket into a social class you wanted to join. Products were priced just high enough to feel special, but still within reach of middle-class shoppers eager to buy into the lifestyle. That model is starting to crack: Allbirds is closing its stores, Away has gone through several rounds of layoffs, and Glossier’s valuation has dropped by half over the past five years. Part of the problem is that the number of middle-class consumers who fueled these aspirational brands is shrinking, with more than half of Americans living paycheck to paycheck, and a quarter of households spending nearly all their income on essentials. Instead of seeking out aspirational brands, many of those consumers are migrating toward budget retailers. Walmart offers a telling example. Long associated with low-income shoppers, the company has spent years adding more premium brands to its shelves in an effort to attract wealthier households. The strategy is paying off: Walmart has gained market share among customers earning more than $100,000, helping propel the company to a market capitalization of $1 trillion. [Photo: Ulta] Ultas Radical Idea Ulta Beauty was founded in Bolingbrook, Illinois, in 1990, at a time when the beauty industry was rigidly segmented. Prestige brands like Lancôme and Estée Lauder were locked behind department-store counters, while mass-market staples such as Revlon and CoverGirl were relegated to drugstore aisles. Ultas founders challenged that divide. Their insight was simple: Consumers already shopped across price pointsand they wanted a single destination that reflected how they actually bought beauty. The model took hold quickly. Ulta scaled by opening large-format stores across the country, primarily in strip malls, many anchored by in-house salon services like haircuts and facials. Growth accelerated after the company went public in 2007. From 2010 to 2020, Ulta tripled its store count to roughly 1,200 locations, while revenue climbed from about $2 billion to nearly $7.4 billionan impressive feat in a decade when many peers were shrinking. The surge was driven by a rare alignment of factors: consumers increasingly mixing mass-market and high-end beauty, a booming beauty industry with new brands popping up daily, and a disciplined store rollout that favored underserved suburban markets over expensive shopping centers. Ultas broad appeal has been central to that success. While Sephora, its closest competitor, built its identity around a tightly curated assortment of roughly 300 high-end brands, Ulta pursued a more democratic strategy, offering around 600 brands spanning mass-market and luxury. It also operates roughly twice as many U.S. stores as Sephora. That breadth makes Ulta equally compelling to brands. Ulta gives us the scale to recruit new customers, says Sabeen Mian, president of the company behind Grande Cosmetics and Lilly Lashes, both sold at Ulta. Compared to more narrowly positioned prestige retailers, Ulta offers a broader aperture: more doors, more shopping frequency, and more opportunities to convert curiosity into long-term loyalty. In Ultas 1,500 stores, shoppers can find dozens of products priced under $20, bolstered by frequent promotions and famously generous coupons that reinforce the sense of value. “They reach everybody in America,” says Sucharita Kodali, retail analyst at Forrester. “They’ve got so many stores, and many are colocated with grocery stores and other mass merchants.” Ulta has also been investing in its high-end offerings. Its the exclusive retail partner for Beyoncé’s new haircare brand, Cécred, which sells $31 shampoo and $44 hair oil, as well as Rihanna’s Fenty Skin Body, which sells $30 body wash. According to a recent earnings call, these were among the most successful product launches in Ultas history. While the company doesn’t publish data about customer incomes or market share gains by demographic, it has boasted that its premium brands have been flying off the shelves. [Photo: Ulta] The Lipstick Index Steelman argues that Ultas founders were right all along. If you open my makeup bag, youd see everything from NYX to YSL, she says. This is how the consumer is shopping today. That mix becomes especially powerful during an economic downturn. Ultas emphasis on value attracts cautious shoppers across income levels. More broadly, the beauty industry tends to be insulated from economic downturns. In fact, some categories of beauty products tend to sell better in times of recession. In 2001, following the dot-com crash and the attacks of 9/11, Estée Lauder Chairman Leonard Lauder noticed that sales of high-end lipstick surged. He dubbed the phenomenon the lipstick indexthe idea that consumers cut back on major purchases during economic stress but still allow themselves small luxuries. A $48 Chanel lipstick can feel like a reasonable consolation prize when a $1,200 designer wallet is out of reach. “It’s an easy, low-ticket, indulgent purchase,” says Kodali. Economists debate whether the lipstick index is a reliable recession indicator. But Steelman says she sees the behavior firsthand: Shoppers of all income levels are still willing to indulge occasionally. Compared with the cost of travel, home renovations, or new furniture, even luxury beauty feels manageable. Ultas success suggests something deeper is going on. Todays consumers arent shopping to signal status or buy into a lifestyle. In an uncertain economy, theyre shopping to maintain control. Ultas shelves let them do exactly thattrade down and trade up in the same visit, adjusting in real time. Shoppers can save on mascara, redeem a coupon, and still leave with a Dior lipstick that feels indulgent without being irresponsible. Steelman is leaning into that emotional calculus. In the world were in, which is just so heavy, she says, Ulta is a place where you can experience what makes you happy.
Category:
E-Commerce
Nili Lotans Tribeca flagship has been a fixture in the neighborhood for 20 years. It’s an austere space that brings her aesthetic universe to life, one that blends silk slip dresses with military-inspired jackets, and crisp button-down shirts with utilitarian pants. But now, across the street, there’s a second store devoted to just one thing: denim. No knits. No tailoring. Just jeans. Denim has always been at the heart of Lotan’s collections, but Lotan has found that the careful design of the jeansand care that went into making themgets lost when they are folded into seasonal collections. Now, the denim store and flagship operate as a single ecosystem. Sales associates help clients find their favorite jeans, then walk them over to complete the look. [Photo: Nili Lotan] This new store is part of Lotan’s growing fleet of seven stores around the world, alongside a healthy wholesale business that spans upwards of 150 stores. She launched this business in 2003 without outside investment, growing slowly and conservatively, prioritizing profitability over growth. Nili Lotan has a cult following that spans from Seoul to Paris, achieving a scale that looks effortless nowbut was earned through two decades of discipline, focus, and creating products that aren’t built on trends. It takes about 15 years to be an overnight success, Lotan says. But when you get there, you know what youre doing. [Photo: Nili Lotan] Designing For Herself Lotan grew up in Israel, the daughter of European immigrants, and moved to New York in her early twenties. Before launching her own label, she spent decades working for other designers including Ralph Lauren, Liz Claiborne, and Adrienne Vittadini. I worked six years in every company that I worked for, she says. I learned. When she launched her brand, she had modest ambitions. She designed five pieces, each carefully chosen to reflect her own distinct style and point of view. Her look is defined by the collision of contrasting aesthetics: refined silk blouses with workwear trousers, feminine dresses with menswear-inspired jackets, pairing leather pants and jackets with office attire. The aesthetic is easy to wear but also a little surprising. Lotan is part of a cadre of independent women designersincluding Jenni Kayne, Rachel Comey, Veronica Beard, and Jamie Hallerwho design based on their own personal style and lived experience, treating their own wardrobes as research. For stylish, well-heeled women in big cities, the approach of smaller designers is more intriguing than larger luxury houses. Shon [Photo: Nili Lotan] Nili Lotan Loves Denim For two decades, Nili Lotan’s best-selling product has been the Shon jean, which features a slightly barrel shape, inspired by vintage workwear and military garments. Lotan was immediately intrigued by its silhouette, which stood out at a time when skinny jeans were all the rage. She styled it with unexpected tops, like blazers and lacy blouses. Lotan believes part of her success comes from not chasing trendseven when trends eventually catch up. Over the few years, barrel-leg jeans had a moment. “Everyone finally caught up,” she says. But even as the trend has faded, the Shon continues to fly off the shelf. “People are drawn to my pants not because they’re in fashion, but because they capture a feeling: It’s rebellious, it’s cool, it has a personality. For Lotan, part of the appeal of denim is that it is a complicated material to work with. To achieve the look you want, you have to consider how the fabric is dyed, bleached, and softened, then distressed by sanding and stone-washing. Then, you need to work with experts who can cut and sew the thick, heavy material. She works with just two Japanese fabricsstretch and non-stretchand launders everything in a Los Angeles factory that uses solar power and recycled water to reduce water use by up to 90%. If you start with not-so-good fabric, youre never going to get authenticity, she says. Designing is like cooking. Youre only as good as the material youre using. Florence [Photo: Nili Lotan] Today, 45% of Lotan’s business comes from five pairs of pants. The silhouettes are varied. Jane Birkin and Serge Gainsbourg have been very influential to Lotan. The Celia jean is a mid-rise flare inspired by the looks Birkin would wear in the 1970s; the Florence jean is a flare with two patch pockets n the front inspired by the French sailor pants Birkin wore all her life. Then there’s the Shon. It now comes in every possible denim wash, and even other materials, including corduroy, cotton, linen, and leather. “Some of my customers have 10 Shons,” says Lotan. “They will buy them in every configuration, every fabric.” The denim store is designed to be a pure expression of Lotan’s design philosophy. It’s a place where customers can slow down, try things on, and understand what theyre buyingand why it feels different. On the floor, Lotan displays some of her sources of inspiration, including the flight suit her husband wore as a pilot in the Israeli Air Force. “This is what started it all,” she says.
Category:
E-Commerce
Jimmy Donaldson might have made his fortune on YouTube, but the man better known as MrBeast has plans for a much wider financial empireand hes well on his way to achieving it. Through Beast Industries, the $5 billion holding company for his growing corporate ecosystem, Donaldson is assembling a wide range of businesses that extend far beyond the influencer space. The latest expansion came on February 9, with the purchase of the teen-focused banking app Step. Banking isnt the end game, either. Beyond his current holdings, Donaldson has broader ambitions that could further diversify his income streams. Heres a look at the businesses currently under the Beast Industries umbrella, along with one Donaldson hopes to add in the months ahead. Feastables Donaldson makes more from Feastables than he does from his social media videos. Launched in 2022 as a chocolate bar company, it quickly expanded into other snacks, including cookies and gummies. The products are stocked at Walmart, Target, and CVS and distributed internationally. And despite spending virtually nothing on advertising and marketing, the company hit annual revenue of $200 million faster than any other consumer packaged goods brand, ever. Lunchly This joint venture, founded alongside Logan Paul and KSI, two other giants in the creator space, is positioned as a healthier alternative to Lunchables (though there’s virtually no evidence backing up that claim). The brand had a big PR misstep in 2024, when its meals were alleged to contain moldy cheese, which caught the attention of the Food and Drug Administration. Lunchly got through that controversy and its products are still on the market, with four varieties of snack kits available at stores. Step Donaldson’s most recent acquisition takes him into the fintech space. Step is a digital banking platform that counted Justin Timberlake, Will Smith, and Stephen Curry among its investors. It caters to younger generations, offering savings accounts, a debit-card-like Visa that builds their credit score, and more. (Terms of the deal weren’t disclosed.) In a February 9 social media post, Donaldson said he saw the Step acquisition as an opportunity to “give millions of young people the financial foundation I never had. Step will likely be folded into a new division, called MrBeast Financial, which Donaldson recently trademarked. MrBeast Channels Donaldson might be branching out, but to many people he remains, above all, a YouTube star. His primary channel is the most subscribed to in the world. Localized channel offshoots show his videos with Hindi, Spanish, and other non-English voice-overs. His additional channels, including Beast Reacts and MrBeast Gaming, further boost his online presence. Beast Games In 2024, Donaldson expanded beyond online videos to the streaming world, acting as executive producer for Beast Games, which airs on Amazon Prime Video. That show went on to become the most-viewed unscripted series in Prime Video’s history, attracting more than 50 million viewers within its first 25 days. A second season debuted on Prime Video in January, quickly climbing to become the most-streamed program on the service. Beast Philanthropy Not all of MrBeast’s business ventures are for-profit. Beast Philanthropy is a 501(c)(3) organization that aims to leverage social media to raise funds for global charitable causes. In November, the unit announced a partnership with the Rockefeller Foundation to combine their strengths. Months before that, Donaldson livestreamed for 15.5 hours to collect money for charity, raising $12 million in that time, setting a new record. MrBeast Labs This line of toys, launched in 2024, didn’t get the online push that Feastables did (in part because Donaldson was weathering some controversies at the time). That didn’t hurt the reception much, though. Thanks to positive media reviews, the minifigures were topping the sales charts on Amazon within a year. Prices for the toys range from $5 to $25. Beast Animations Another YouTube channel, Beast Animations features short-form videos based off of the MrBeast Lab toy line. Using an anime-like art style, the 10-episode series has been viewed more than 42.5 million times since its debut in October 2025. There’s no word yet on whether a second season is planned. Viewstats Donaldson is famously obsessed with data, so it’s not a big surprise that he built his own platform to analyze the numbers on his many channels. And given his wide swath of business ventures, it’s not too surprising that he began distributing those digital tools to other content creators. Viewstats markets itself as a device to help creators “create video ideas, titles, and thumbnails that go viral.” MrBeast Burger A rare misstep for Donaldson, this chain stumbled after customers complained about undercooked burgers. Envisioned as a delivery-centric venture specializing in burgers and fried chicken sandwiches, MrBeast Burger was meant to be a cornerstone of a food empire. Initially, it did well, selling 1 million burgers in three months. But then the quality complaints started and Donaldson got frustrated with Virtual Dining Concepts, his partner in the venture, which led to a bitter court battle. The business is still operating, but Donaldson has de-emphasized it amid his other ventures. Beast Mobile This is a business that Donaldson has not yet launched, but one he has made clear is a goal. In December, Beast Industries CEO Jeffrey Housenbold said at The New York Times DealBook Summit that the company plans to launch a phone service that would leverage MrBeasts popularity to sell wireless plans. Rather than building its own cellular network, Beast Mobile would likely be a mobile virtual network operator, running on the infrastructure of an existing carrier, similar to Mint Mobile. No timeline for the launch has been announced.
Category:
E-Commerce
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