Ulta Beauty adapts to pandemic, growing revenue 40% with a “digital store of the future” run on Redis Cloud

The challenge

The retail landscape has undergone a massive transformation in recent years, driven by technological advancements and significantly accelerated by the COVID-19 pandemic. As consumer preferences shifted, online shopping became the dominant force, significantly reshaping operating models. Ulta Beauty’s CEO Dave Kimbell called 2020 an “incredibly disruptive year” noting “permanent shifts in consumer behavior.”

In the midst of this massive transition toward e-commerce shopping, Omar Koncobo, IT director on Ulta Beauty’s innovation team shifted into high gear to accommodate a rapidly growing volume of user sessions on Ulta Beauty’s apps. During one busy holiday period, Ulta Beauty’s business analysts estimated inventory services would need to scale at least four times. Seeing the writing on the wall, Koncobo and Ulta Beauty’s innovation team knew it was time to modernize their apps to adapt to changes in consumer behavior.

Adopting a modern software architecture

Ulta Beauty follows a “test the waters” approach with open-source technology, moving to licensed versions once proven. Redis fit this strategy well. “The transition from on-prem Redis to the Google Cloud configuration has been easy,” says Koncobo. Redis Cloud also offers flexibility to migrate across major clouds like Google Cloud, AWS, or Microsoft Azure. “We looked at many other [database] solutions, most of which were complex to implement,” Koncobo says. “Redis worked perfectly. It was easy to get going at a reasonable price. When we upgraded to Redis Cloud, the Redis support team was amazing.”

By moving to Redis Cloud, Ulta Beauty optimized its data layer for a more modernized microservices architecture, replacing tightly coupled software processes. This allowed for independent, scalable services, ideal for rapid rollouts like the Curbside Pickup launch.

Reducing inventory call response times by 99% in 4 weeks

“It only took four weeks to develop a strategy to open our entire retail chain to curbside pickup,” Koncobo recalls. “As we expanded the curbside pickup service, we didn’t have to add additional capacity. Everything scaled perfectly.”

Redis Cloud’s caching capabilities improved inventory management, replacing unreliable third-party middleware. Data is stored in-memory for faster requests and scalable performance, with inventory calls now taking milliseconds instead of one or two seconds.

From brick and mortar to a personalized, omnichannel “store of the future”

Ulta Beauty’s evolving Redis-based data layer also helps the innovation team to unify the in-store and digital experiences. The retailer’s online strategy includes a major refresh of its website combined with new content and increased personalization tools. A partnership with Google leverages Ulta Beauty’s GLAMLab, a virtual try-on tool with select brands found in Google’s Search and YouTube platforms. “The new platform we’re building is more than just an e-commerce channel,” Koncobo notes. “It will power our omni channels as we take the shopping experience to a new level.”

A key part is the “roaming cart” or “roaming basket” concept, which merges physical and digital experiences. “Whether you log in online or go into a store, your profile will be the same,” Koncobo explains. “If you add a tube of lipstick to your digital shopping cart but don’t check out, the in-store associate will help you complete the purchase during your next store visit —perhaps with a special coupon for that product. Similarly, all orders guests place in the physical store appear on the digital site.

“Redis supplies the technology to help us make these personalized experiences possible. Our innovation team works hard to see what else we can do to keep guests engaged and provide what they’re looking for. Redis allows us to invest in what is critical to the business.”