Particle.news
Download on the App Store
19 ARTICLES
·
1h ago

Ulta Beauty and Target to End Shop-In-Shop Partnership in 2026

Operational challenges combined with overlapping store footprints prompted the split, setting the stage for each retailer to pursue its own growth strategy.

Image
FILE - In this May 30, 2018, photo, shoppers look through the updated cosmetic department at a Target store in San Antonio. AP Photo/Eric Gay, File)
Image
The Ulta Beauty section of a Target store in White Plains, N.Y., on Nov. 17, 2022.

Overview

  • The companies announced a mutual decision not to renew their shop-in-shop partnership, with mini-shops and linked loyalty benefits remaining in place through the agreement’s August 2026 expiration.
  • The program expanded to roughly 610 Target locations since its 2021 launch but fell short of the original 800-store goal, prompting Ulta to pause new rollouts in April.
  • Analysts highlight messy in-store operations, theft deterrence measures and understaffing at Target as key factors that undermined the customer experience.
  • The news led to modest market reactions, with Target shares down about 2% and Ulta shares off around 1–2% on the day of the announcement.
  • Ulta plans to sharpen its focus on the ‘Ulta Beauty Unleashed’ omnichannel initiative, including a marketplace launch and international expansion, while Target will refine its differentiated beauty assortment and in-store experiences.