Ulta Beauty and Target have mutually agreed to end their Ulta Beauty at Target shop-in-shop partnership when the current agreement concludes in August 2026.
The partnership, which launched in 2021, is akin to the shop-in-shops of Ulta competitor Sephora, which were first located in JCPenney stores and then shifted to Kohl’s. But the winds have shifted over the last five years: For the past six months Target has been experiencing significant declines in sales and foot traffic following backlash over its pullback from DEI initiatives.
At the same time, Ulta has been doubling down on its direct channels, announcing plans to open 200 net-new stores over the next three years to reach a total of 1,800. And in the same statement announcing the end of its relationship with Target, Ulta highlighted the forthcoming launch of the Ulta Beauty Marketplace later this year — describe as “a curated online destination designed to engage new brands and audiences.”
Ulta Seeking Different Paths to Gain New Customers
Reaching new audiences was one of the core goals of Ulta’s Target shop-in-shops, but the beauty retailer clearly sees other, potentially more fruitful avenues toward that aim now, particularly as Target’s current struggles don’t appear to be dissipating.
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In its fiscal Q1, which ended May 3, 2025, Ulta Beauty saw net sales increase 4.5% year-over-year to $2.8 billion and the retailer increased its outlook for the year. In July, Ulta also purchased British beauty retailer Space NK, part of its Ulta Beauty Unleashed growth strategy. Meanwhile, Target’s fiscal Q1 saw net sales decline 2.8% YoY, from $24.5 billion in 2024 to $23.8 billion, and the company said it expects a low-single-digit decline in sales for the full year.
“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,” said Amiee Bayer-Thomas, Chief Retail Officer at Ulta Beauty in a statement. “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.”
The Ulta Beauty at Target experience will continue in Target stores and on Target.com through next August, and customers with linked rewards accounts will continue to earn Ulta Beauty Rewards on eligible Ulta Beauty at Target purchases until the shop-in-shops are closed.
“We’re proud of our shared success with Ulta Beauty and the experience we’ve delivered together,” said Rick Gomez, EVP and Chief Commercial Officer of Target in a statement. “The magic of shopping for beauty at Target is the combination of on-trend products that delight consumers with an inspiring and convenient shopping experience. We look forward to what’s ahead and remain committed to offering the beauty experience consumers have come to expect from Target — one centered on an exciting mix of beauty brands with continuous newness, all at an unbeatable value.”
