In a joint release on Thursday, August 14, Ulta Beauty and Target Corporation have announced that they will not renew their shop-in-shop partnership, when the current agreement ends in August 2026.
Launched in in 2021, the “Ulta Beauty at Target,” shop-in-shop concept was aimed at giving access to prestige beauty products to Target customers. The partnership also offered customers the opportunity to link their Ulta Beauty Rewards and Target Circle accounts for added convenience and value.
Since 2021, Target opened more than 600 Ulta shops inside of its stores. However, as the U.S. prestige beauty retail market is marked by the rise of Amazon and a growing influence from Sephora, Ulta Beauty is deploying new strategies to better address the competition.
Falling store traffic at Target, combined with understaffing in a sector that relies heavily on personalized customer guidance, may have contributed to Ulta’s strategic shift.
“We’re confident our wide-ranging assortment, expert services and inspiring in-store experiences will reinforce our leadership in beauty and define the next chapter of our brand,” said Amiee Bayer-Thomas, chief retail officer, Ulta Beauty.
Target stated that it will continue to offer a distinctive beauty assortment and is developing a new beauty experience for its tens of millions of weekly shoppers.
“We’re proud of our shared success with Ulta Beauty and the experience we’ve delivered together,” said Rick Gomez, executive vice president and chief commercial officer, Target. “The magic of shopping for beauty at Target is the combination of on-trend products that delight consumers with an inspiring and convenient shopping experience. We look forward to what’s ahead and remain committed to offering the beauty experience consumers have come to expect from Target – one centered on an exciting mix of beauty brands with continuous newness, all at an unbeatable value.”
Ulta Beauty is the largest specialty beauty retailer in the U.S. Since opening its first store in 1990, Ulta Beauty has grown to approximately 1,500 stores across the country and is also expanding its presence internationally through a joint venture in Mexico, a franchise in the Middle East, and through the recent acquisition of Space NK, a luxury beauty retailer operating in the U.K. and Ireland.
