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Ulta Beauty planning new ecommerce distribution facility

By Deanna Utroske

21-Nov-2016
Last updated on 21-Nov-2016 at 19:07 GMT2016-11-21T19:07:38Z

Ulta Beauty planning new ecommerce distribution facility

To keep up with online cosmetic and personal care product orders, the company is preparing to build a new facility in the Western US. And Fresno, California, is the likely site.

The timeframe of the new project isn’t clear. Though, CEO Mary Dillion is growing the company swiftly, with new stores, new distribution centers, and new consumer engagement programs (like the Ulta credit card). And deciding on a location for the new center shouldn’t take long.

“We are in the process of completing the final phase of our search for a new distribution center location,” explained the company following a recent meeting of the Fresno City Council. “Fresno is a top contender among the locations under consideration. Negotiations continue, but we hope to confirm a location in the coming weeks.”  (That, according to coverage of the news by Tim Sheehan of the fresnobee.com.)

Fresno, California, has indeed been called the preferred location for the new distribution facility. And while it’s not a done deal yet, the city and state are doing what they can to encourage Ulta to choose Fresno.

Business volume

Ulta Beauty already operates five vast distribution centers across the US. The facilities, located in Romeoville, Illinois; Phoenix, Arizona; Chambersburg, Pennsylvania; Greenwood, Indiana, and Dallas, Texas, are each over 300,000 square feet.

Online beauty is big business. And to keep up with demand, Ulta’s forthcoming ecommerce distribution center will be a 670,000 square foot facility, and it’s anticipated that the company will employ as many as 1,200 people there.

Jobs and taxes

Those jobs are one of the main reasons that Fresno and the state of California are offering Ulta tax incentives to locate there. If the company brings and maintains 500 or more jobs to Fresno, the city will grant $18m in tax rebates and the state approved an additional $8m in tax credits through the Governor’s Office of Business and Economic Development, as Sheehan reports.

Fresno Mayor Ashley Swearengin calls the impending Ulta facility an “important project.” And she thanked the state for “helping our city attract this badly needed job generator to Fresno.”

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