Ulta Beauty CEO says Gen Alpha prefers to shop IRL

Despite being true digital natives, Gen Alpha shoppers are all about IRL.

During Fortune's Most Powerful Women Summit on Tuesday, Ulta Beauty CEO Kecia Steelman said Gen Alpha consumers prefer in-store experiences over online shopping.

"What we're seeing with the Gen Alpha consumer is, yes, they're getting their information online, but they really, really like that experience in store. They like trial. They like hands-on," Steelman said.

Steelman said Gen Alpha shoppers are also into Korean beauty, which has become popular among US consumers, and clean beauty, which is products made ethically with non-harmful ingredients.

"They really do want great products that the value — it's not necessarily just about the cost, but the value for what the benefits are," Steelman said. "They are a very smart segment, and they're going to have very high expectations. So, we've got to make sure that we're always prepared to deliver for them."

Born between 2010 and 2024, Gen Alpha represents the youngest shoppers helping to drive the economy. Mark McCrindle, the social researcher who coined the phrase "Gen Alpha," said this generation has access to products sold worldwide, meaning they can interact in the global marketplace.

Gen Alpha grew up in a world teeming with digital spaces and social media platforms, but a report published by analytics firm Numerator in September said many of them are choosing to unplug when making purchases.

"Two-thirds (66%) of Gen Alpha parents say their child prefers shopping in-store, with the top reasons being family time outside the home (47%) and the sense that shopping trips are fun (45%)," the report said.

However, the researchers found that as those kids grow up, the convenience of online shopping takes priority.

"As kids grow older, they're more likely to prefer staying home, with top reasons including avoiding the time it takes to leave the house (38%), enjoying home more (33%), and finding stores crowded or overwhelming (25%)," the report said.

During the event, Steelman said Ulta Beauty has a responsibility to ensure that it's offering age-appropriate skincare products to its youngest shoppers.

Young shoppers' fascination with skincare products, which has led to a surge in sales, has sparked criticism from older generations on social media. On TikTok, some users said they worried the trend indicated children are growing up too fast or that it encouraged materialism. Others said some youngsters behaved poorly while shopping at stores.

"We do have a responsibility to make sure that we're serving all of our guests and giving them the best experience with the great products that we can offer for all age ranges," Steelman said.

Steelmans said they've taken steps to acknowledge young shoppers visiting their stores.

"We have a lot of training that we do with our associates. We have a lot of conversations with the parents because a lot of times they're shopping with their parents," Steelman said. "We want to make sure that we're just providing all the educational elements that we can, so that they're buying the products that are the right products for them."

Representatives for Ulta Beauty did not respond to a request for comment from Business Insider.

Read next