Ulta Beauty build-out approved at Park 295

Ulta Beauty intends to open a fulfillment center in the first structure developed at Park 295 Industrial Park at Interstate 295 and Duval Road.

  • Columnists
  • Mathis Report
  • Share

Ulta Beauty Inc. landed a permit Friday to build-out a fulfillment center in the Park 295 Industrial Park in Northwest Jacksonville.

The city issued a permit Friday for Jim Cooper Construction Co. Inc. to improve 202,471 square feet of tenant space for Ulta Beauty at a cost of almost $3.98 million at 2619 Ignition Drive.

Ulta will lease part of a 552,634-square-foot building, the first structure at the business park in development at Interstate 295 and Duval Road. NorthPoint Development of Kansas City, Missouri, is developing Park 295.

Tenant improvements show that Ulta will lease in the northern part of the building and the space will include about 7,100 square feet of office space.

Ulta Beauty CEO Mary Dillon said in March that the Bollingbrook, Illinois-based beauty products retailer would open a fulfillment center in Jacksonville in the summer of 2020.

The company distributes and sells cosmetics, fragrances, skin care products and hair care products.

Dillon announced the center, which will be its second fast fulfillment center to serve its e-commerce business, during a quarterly conference call with analysts and investors.

The first will open in a remodeled Ulta distribution center in Romeoville, Illinois, she announced.

Dillon told analysts that “there’s no way, shape or form that the importance of e-commerce” will diminish. It will only grow, she said.

In May, the city confirmed that Ulta Salon, Cosmetics & Fragrance Inc. is Project Flamingo, which City Council approved Jan. 8 for a city grant of $1.425 million.

Ulta Beauty intends to invest $37.5 million to lease and equip the center to distribute private-label skin and hair care products.

City legislation calls for the project to create 30 full-time jobs by year-end 2021 at an average annual salary of $46,346. The positions include managerial, logistical, warehouse, receiving and shipping, forklift operators, truck drivers and support staff.

The company likely will be hiring many more workers because only the 30 jobs are tied to the required annual salary to receive the incentives. Lower-wage warehouse jobs are not counted toward the salary threshold.

In addition, public documents say the company could hire 400 seasonal workers annually.

Construction would start by year-end and the jobs would be hired no later than year-end 2021.

Fast fulfillment centers serve only e-commerce orders. Dillon said the facilities will be able to fill up to 30,000 orders per day during peak times, "increasing our network capacity and progressing toward our goal of two-day e-commerce shipping by 2021." 

In a November presentation to analysts, Ulta Beauty said its goal is two-day e-commerce shipping by 2021.

As of May 4, Ulta Beauty operated 1,196 retail stores across the country and it also distributes products through its website. The stores offer salon services.

Ulta Beauty announced that sales for the 2018 fiscal year that ended Feb. 2 rose 14.1 percent to $6.7 billion. Net income increased 18.6 percent to $658.6 million.

Sales for the first quarter that ended May 4 rose 12.9 percent to $1.75 billion, up from $1.54 billion the year before. Net income rose 16.9 percent to $192.2 million, up from $164.4 million in the first quarter of fiscal 2018.