Ulta Beauty and Target end in-store shops

Target ends its partnership with Ulta Beauty, closing hundreds of in-store shop locations by August 2026, a move that could affect traffic and investor sentiment.

Ulta Beauty and Target end in-store shops arrangement

Ulta Beauty and Target have ended the arrangement that placed hundreds of Ulta Shop in Target mini shops inside its stores. The companies said the partnership will conclude in August 2026, and Target will keep Ulta merchandise on its website. The program grew to more than 600 shops, roughly a third of Target's U S stores, and both sides reported a drop in stock after the announcement. Target says the shift will not remove Ulta products from its online shelves while it rethinks its beauty strategy.

Target has been pushing a broader beauty assortment and has highlighted beauty as a growth area, hoping it would drive foot traffic. Analysts point to a mix of store operating challenges and staffing gaps as factors that may have pushed the decision. One retail observer noted the change could complicate Target's path as it plans for leadership changes in the near term.

The move marks a shift from a co branded approach to a more self directed retail plan. It signals that both brands are recalibrating how they attract shoppers in a crowded field where price and convenience compete with experiences. For Target, the loss of a ready made beauty pull could pressure store traffic and make it harder to lift revenue in a period of slow sales. For Ulta, the exit from hundreds of in store corners may push it to lean more on its own stores and e commerce network. The leadership transition at Target adds another layer of uncertainty as the company searches for a successor who can translate a revised store strategy into measurable gains.

Highlights

The next chapter will reveal how both brands balance scale with experience in a crowded market