Overview

• Target and Ulta announced on August 14 that they will not renew their shop-in-shop agreement after it expires in August 2026.
• More than 600 Ulta Beauty counters remain in Target stores and on Target.com, with linked Ulta Beauty Rewards and Target Circle accounts preserved until the partnership ends.
• Ulta Beauty plans to accelerate its Unleashed strategy by launching an online marketplace later this year and enhancing its own omnichannel operations.
• Analysts cited Target’s flat sales trend, falling store traffic and in-store issues such as staffing shortages and retail theft as drivers of the partnership’s conclusion.
• Shares of both companies dipped modestly in early trading following the announcement.