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Shares of Ulta Beauty and Sally Beauty sank Monday after Amazon launched its own beauty salon for authorized professionals.
The e-commerce giant announced the Amazon Professional Beauty Store to offer professional stylists, barbers, and aesthetic beauty products typically found in salons and spas. Sally Beauty's stock fell 12% and Ulta dropped 3% after the news.
"We are delighted to offer them in the professional beauty industry even more choice through the convenient shopping experience our customers love at Amazon Business," said Steve Kann, director of customer-driven experience at Amazon Business, in a blog post. "Stylists can find more of what they need at great prices with convenient delivery options, and free their time to focus on what's important: their customers."
Amazon's choice for professional use requires a license to purchase products such as issued cosmetology, hairdressing or aesthetic licenses.
The competition adds more pressure to Sally Beauty, whose share has already tumbled 20% of disappointing earnings. Ulta, on the other hand, had a brilliant year with its shares rising almost 40% in 201