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Ulta Beauty Temporarily Closes Its Stores, Remains Open Online

By Daniel B. Kline - Mar 31, 2020 at 11:53AM

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The beauty chain has been impacted by the coronavirus pandemic.

Ulta Beauty (ULTA 1.52%) has become the latest retail chain to close its brick-and-mortar locations due to the coronavirus. The chain's website remains open for business.

The beauty supplies retailer has not given a date when it will reopen its physical stores.

Makeup and makeup tools.

Ulta has temporarily closed all its U.S. stores. Image source: Getty Images.

What is Ulta doing?

Workers at the chain's distribution centers will remain on the job. They will be paid an extra $2 per hour and the company has increased its sanitization efforts while following Centers for Disease Control (CDC) protocols, including social distancing.

"We appreciate the flexibility, collaboration, and understanding our associates have displayed during this uncertain time," said CEO Mary Dillon in a press release. "We understand the direct impact these difficult, yet important decisions have on everyone."

The company plans to pay store workers and salon associates through mid-April. It will also keep benefits going for anyone currently enrolled.

"We will continue to evaluate the impact of COVID-19 in real-time, including recent legislation such as the CARES Act, should reopenings be further delayed," Dillon added.

Ulta had no choice

While people may want to look good for their online meetings, it's hard to argue that Ulta stores are critical enterprises. By closing, the company is doing the right thing by its workers and customers.

By remaining open online, Ulta can still fill orders and meet the needs of its customers. That seems like a reasonable solution since the company has pledged to make every effort to keep its workers as safe as possible.

Daniel B. Kline has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Ulta Beauty. The Motley Fool has a disclosure policy.

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