The partnership between Ulta Beauty and Target for their in-store “mini shop” will terminate when their current agreement runs out in August 2026 according to statements made by the companies. The prestige beauty brands joined Target’s mass retail network through this partnership which started in 2021.
The companies have not provided any explanation regarding the termination of their partnership. The stock price of Target dropped by 2% while Ulta experienced a 1% decline after the announcement.
Target faces declining discretionary spending because customers remain cautious due to inflation and trade-war-related uncertainties. The beauty segment at Target achieved a 5% increase in sales during 2024 while overall merchandise revenue decreased by 0.9%.
The agreement between Ulta and Target established dedicated beauty spaces within Target stores and on Target.com which combined premium brands with Target’s standard product selection. The Ulta Beauty at Target concept will continue to be accessible to customers until the contract period expires.
The partnership termination will push Ulta to evaluate its off-mall business strategy while Target may explore new in-store initiatives to preserve beauty category sales and customer traffic.
