Ulta Beauty and Target to conclude partnership in 2026.

Ulta Beauty and Target have agreed not to renew their partnership, which will conclude in August 2026. The Ulta Beauty at Target shop-in-shop experience will continue until then, offering convenience and value to beauty enthusiasts. Guests with linked rewards accounts will continue to earn Ulta Beauty Rewards on eligible purchases until August 2026.

Ulta Beauty (NASDAQ: ULTA) and Target Corporation (NYSE: TGT) have mutually agreed not to renew their Ulta Beauty at Target shop-in-shop partnership, which is set to conclude in August 2026. This decision follows a four-year collaboration that began in 2021, providing Ulta Beauty products in Target stores and on Target.com [1][2].

The partnership allowed Ulta Beauty to expand its customer base during the COVID-19 pandemic when its stores were shuttered and demand for beauty cosmetics was reduced. For Target, it offered higher-end cosmetics, increasing the value of its average basket. Ulta Beauty had a presence in about 600 Target stores as of April 2025 [2].

Ulta Beauty's CEO, Kecia Steelman, stated in April that the company was taking a pause on opening additional locations with Target and was evaluating how to operate the partnership more efficiently. The company is now shifting to standalone stores, e-commerce expansion, and international growth under its "Ulta Beauty Unleashed" strategy [2][3].

Target, meanwhile, is focusing on affordability, with plans to introduce 2,000 new budget products. This strategic pivot aims to capture a broader demographic, particularly price-sensitive consumers [3].

The partnership's dissolution impacts customer loyalty programs, with 4 million cross-linked accounts facing fragmented rewards. Both companies will need to rebuild trust independently. Ulta Beauty is focusing on its e-commerce marketplace to engage customers directly, while Target must balance affordability with quality to maintain customer loyalty [3].

The end of the Ulta Beauty and Target shop-in-shop partnership marks a pivotal moment in the evolving retail and beauty landscapes. It raises critical questions about brand autonomy, customer loyalty, and market positioning as both companies navigate competitive pressures and shifting consumer preferences [3].

References:
[1] https://corporate.target.com/press/release/2025/08/ulta-beauty-and-target-announce-plans-to-conclude-partnership-in-2026
[2] https://www.marketscreener.com/news/ulta-beauty-target-to-end-partnership-update-ce7c51d9da80f222
[3] https://www.ainvest.com/news/ulta-beauty-target-partnership-strategic-implications-retail-beauty-sectors-2508/