Ulta and Target end deal for in-store shops

Target and Ulta Beauty End Partnership, Hundreds of Mini Shops to Close

Target and Ulta Beauty have announced the end of their partnership, which brought mini Ulta Beauty shops to hundreds of Target stores across the US. The deal, launched in 2021, allowed Target to offer a range of prestige beauty brands to its customers, with over 600 Ulta Beauty shops opening in Target stores. However, the partnership will come to an end in August 2026, with both companies citing a desire to focus on their own business strategies.

The loss of the Ulta Beauty shops is likely to be a blow to Target, which has been struggling to attract shoppers and investors in recent years. The company’s annual sales have been flat for four years, and it expects sales to decline this fiscal year. The departure of Ulta Beauty’s products may make it even harder for Target to compete with other retailers and online beauty brands.

Impact on Target’s Business

Target had been touting the Ulta Beauty partnership as a key driver of store traffic and sales growth. The company’s CEO, Brian Cornell, had highlighted the beauty category as a growth area for Target, citing a 7% increase in beauty sales in the fiscal year that ended in early February. However, with the loss of the Ulta Beauty shops, Target will need to find new ways to attract customers and drive sales.

The end of the partnership may also raise questions about Target’s ability to execute its business strategy. The company has faced criticism for its handling of diversity, equity, and inclusion initiatives, and its Pride collection sparked backlash earlier this year. With the departure of CEO Brian Cornell expected soon, the company’s next leader will face significant challenges in turning around the business.

Reasons Behind the Partnership End

While neither company has given a specific reason for the end of the partnership, analysts have suggested that Target’s “messy in-store operations” and issues with retail theft and staffing may have contributed to the decision. David Bellinger, an analyst for Mizuho Securities, noted that the loss of the Ulta shop-in-shop relationship is a negative development for Target, and something that the company’s next CEO will need to address.

Despite the end of the partnership, both companies have expressed pride in their shared success and commitment to offering customers a great beauty experience. Ulta Beauty’s Chief Retail Officer, Amiee Bayer-Thomas, described the Target deal as “one of many unique ways” the company has brought beauty to customers nationwide, while Target’s Chief Commercial Officer, Rick Gomez, said the company remains committed to offering an exciting mix of beauty brands at unbeatable value.