Ulta Beauty and Target Conclude Shop-in-Shop Partnership Amidst Challenges
Beauty retailer Ulta Beauty and discount giant Target have announced the non-renewal of their shop-in-shop partnership, set to expire in August 2026. This decision marks the end of a four-year collaboration that saw expansion to over 600 stores.
The partnership, initiated in 2021 amidst the pandemic boom, facilitated Target customers to shop Ulta products in dedicated 1,000-square-foot beauty sections. However, the arrangement encountered increasing challenges such as shoplifting, understaffing, and foot traffic cannibalization, as reported by employees on Reddit.
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“We’re proud of our shared success with Ulta Beauty,” expressed Rick Gomez, Target’s EVP and chief commercial officer. The partnership yielded approximately $465 million in revenue by 2024, accounting for about 4% of Ulta’s total sales.
As both companies shift their focus back to core strategies, Ulta CEO Kecia Steelman is prioritizing the company’s standalone stores and international expansion. Simultaneously, Target is launching its own in-house beauty line, featuring over 2,000 products priced under $20. This decision mirrors broader retail challenges, with Target experiencing declining sales and both companies endeavoring to fortify their individual brand identities.
Source: Target Corporation