US Target and Ulta are preparing to part ways after deciding not to renew their joint partnership. The collaboration, launched in 2021, introduced Ulta Beauty shops inside Target stores nationwide. These dedicated spaces allowed shoppers to buy skincare, fragrance, and makeup alongside their regular Target purchases. However, the companies have now confirmed that the partnership will officially end in 2026.
Currently, Ulta operates in about 600 of Target’s nearly 2,000 stores. The beauty brand created sections of around 1,000 square feet located next to existing beauty aisles. This model offered guests convenient access to Ulta’s premium and mass-market brands under one roof. US Target and Ulta believed this model strengthened customer loyalty and expanded their reach.
Ulta executives described the partnership as a creative way to bring beauty to more consumers. They emphasized the company’s long history of reshaping the beauty industry by merging mass and luxury offerings. Target leaders also highlighted their focus on delivering the beauty experience customers expect. They pledged to continue enhancing beauty assortments in stores and online after the partnership concludes.
The collaboration began at a time when shopping behavior shifted significantly. During the pandemic, consumers wanted one-stop shopping to reduce exposure risks. Beauty sales also changed as masks lowered demand for lipstick but boosted skincare sales. The in-store Ulta shops helped both companies reach more customers while meeting new consumer needs.
Despite its benefits, the decision to end the partnership reflects broader challenges in the retail sector. US Target and Ulta both face evolving consumer demands and heightened competition. Target is currently working to recover sales after shoppers pulled back on discretionary purchases. Meanwhile, competitors continue attracting buyers with lower prices and fresh merchandise strategies.
Analysts note that Target will now need to refine its beauty strategy. The company aims to maintain a strong market presence in the beauty category despite Ulta’s departure. Target leaders expect investments in store layouts, new products, and digital engagement to support growth. Ulta, meanwhile, will continue to expand its standalone stores and loyalty-driven offerings.
The end of this agreement demonstrates how retail partnerships evolve with shifting conditions. While both companies gained during the collaboration, their future strategies now diverge. Still, US Target and Ulta remain powerful players that will shape the beauty retail industry separately.
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