Target and Ulta Beauty to Conclude Partnership in 2026
NEW YORK (AP) — The strategic alliance between retail giant Target and beauty specialist Ulta Beauty, which brought premium cosmetic shops into hundreds of discounter locations, will conclude in August 2026. Both companies announced Thursday they have “mutually agreed” not to renew the partnership, which was launched in 2021.
The “Ulta Beauty at Target” Experience
The “Ulta Beauty at Target” experience currently operates within approximately 600 of Target’s nearly 1,980 stores nationwide, representing about 30% of its total footprint. These dedicated 1,000-square-foot sections were designed to integrate Ulta’s vast assortment of makeup, skincare, and fragrance products, ranging from mass-market to luxury brands, directly into Target’s accessible retail environment.
A Strategic Move Amidst Changing Consumer Habits
First unveiled in 2020 amid the shifting consumer habits driven by the COVID-19 pandemic, the partnership was strategically positioned to capitalize on the increasing demand for convenient, one-stop shopping. At the time, while the pandemic dampened sales of certain cosmetics like lipstick due to mask-wearing, the skincare segment experienced robust growth. Target CEO Brian Cornell highlighted the initial ambition in 2020, stating, “It’s a combination of two winning retailers that have great momentum in the market that can redefine the category.”
Looking Ahead for Both Retailers
Amiee Bayer-Thomas, chief retail officer of Ulta Beauty, reflected on the collaboration, noting in a statement that the partnership was “one of many unique ways we have brought the power of beauty to guests nationwide.” Similarly, Rick Gomez, executive vice president and chief commercial officer at Target, reiterated the retailer’s ongoing commitment to “offering the beauty experience consumers have come to expect from Target,” hinting at future developments in its beauty strategy.
Despite the upcoming conclusion of the partnership, the Ulta Beauty sections will remain operational in Target stores and on Target.com until the August 2026 expiry. The announcement comes as Target faces broader challenges, including a notable pullback by consumers on discretionary spending and increased competition. The company is set to release its fiscal second-quarter results next Wednesday, a report closely watched by analysts for indicators of its current market performance. In September 2022, Target extended CEO Brian Cornell’s contract for an additional three years, though a definitive succession plan has yet to be publicly disclosed.
