Ulta Beauty has built a fast-growing hair and Cosmetics Empire in America's strip malls and is ready to go-toe-to-toe with the big department stores (Macy's and Nordstrom). The company owes success to an all-inclusive ethos, selling everything from mass-marker brands to high-end cosmetics to professional hair-care products, all in a format that lets customers try before they buy. In 1994, Ulta was one of the first to offer consumers a rewards program, and this was a relatively new concept in retail at the time. The program is called Ultamate, and is one of the nation's biggest loyalty programs, with 20.6 million members - and members account for an astounding 80% of the firm's sales. Loyalty programs are an example of .