Ulta Beauty and Target set to end partnership in 2026
Stock prices for both companies experienced drops following the announcement, with Target’s shares falling about 2% and Ulta’s roughly 1%.
USA – Ulta Beauty and Target have jointly decided that their shop-in-shop partnership will conclude when the current agreement ends in August 2026.
The collaboration, which began in 2021, featured Ulta Beauty in 600 mini-stores within Target locations across the U.S., giving Target customers increased access to Ulta’s diverse range of beauty products.
As part of the agreement, until the partnership ends, Ulta Beauty at Target experiences will continue both in-store and online through Target.com.
Amiee Bayer-Thomas, chief retail officer, Ulta Beauty, stated, “For 35 years, Ulta Beauty has revolutionized how people experience beauty – bringing together an unmatched assortment from mass to luxury – and our partnership with Target was one of many unique ways we have brought the power of beauty to guests nationwide.”
“As we continue to execute our Ulta Beauty Unleashed plans, 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.”
Following the announcement, stock prices for both companies experienced drops, with Target’s shares falling about 2% and Ulta’s roughly 1%.
Target has experienced declining store traffic and sales, influenced by macroeconomic pressures such as inflation and changes in consumer spending habits.
Target’s executive vice president and chief commercial officer, Rick Gomez, reflected pride in the partnership’s success and reaffirmed Target’s commitment to offering customers an exciting and convenient beauty shopping experience.
Both companies have committed to ensuring a seamless transition, maintaining product availability, and supporting their teams until the partnership fully ends.
Moving forward, Ulta Beauty plans to expand through standalone stores, online channels, including the upcoming Ulta Beauty Marketplace, and international markets.
On the other hand, Target plans to continue curating a differentiated beauty assortment and creating new beauty experiences for its millions of weekly shoppers.
The decision to end the partnership comes amid broader challenges faced by both companies.
Ulta, meanwhile, has been focusing on new strategic initiatives, including the launch of the Ulta Beauty Marketplace, aiming to engage new brands and audiences with an elevated omnichannel experience.
The partnership termination also follows a period of leadership change at Ulta and a reevaluation of its expansion approach within Target stores.
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