After announcing the partnership split, Target shares fell 2%, while Ulta shares fell about 1% on the morning of August 14th.
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Ulta Beauty will close its ministore at its Target location by this time next year, the Cosmetics chain announced on August 14th.
Ulta confirmed its partnership conclusion with Target in a news release as it “mutually agreed” to its current deal, which ended in August 2026. It was rolled out in August 2021 to increase access to Ulta’s beauty products and brands to target shoppers.
“For 35 years, Ulta Beauty has revolutionized the way people experience beauty – acquiring an unparalleled assortment from masa to luxury. And our partnership with Target was one of many unique ways to bring beauty power to guests across the country.”
Rick Gomez, Target’s executive vice president and chief commercial officer, said in a statement that the company is “prideful of the success it has been shared with Ulta Beauty.”
“We look forward to what’s going forward and we’re continuing to be committed to providing the beauty experience that consumers expect from their target. For one, we’re all invincible values, centered around an exciting mix of beauty brands with continuous newness,” Gomez said.
Why target, end the Ulta partnership?
According to Reuters, the goal is struggling to reduce demand as discretionary purchases decline due to concerns over the economy and increased inflation. Retailers have also experienced declines in sales, national boycotts and litigation related to their diversity, equity, and inclusion (DEI) practices.
Moreover, many of the target products are sourced from countries where President Donald Trump has placed a wide range of tariffs.
After announcing the partnership split, Target shares fell 2%, while Ulta shares fell about 1% on August 14th. According to Reuters, sales in the Beauty segment rose 5% in 2024.
As beauty products sales increase, it is not clear why companies have now ended their five-year partnership.
How many beauty shops are there in Target and Urta?
Target is a leading US retailer with 1,981 stores in all 50 states and in Washington, DC. According to the National Retail Federation, it is the eighth largest US retailer behind Walmart, Amazon.com and Costco Wholesale.
As of May 2025, Ulta Beauty operates 1,451 stores in all 50 states. The Wall Street Journal reports that over 600 Ulta ministores operate within the target retailer.
Shoppers will be able to purchase Ulta products from Target stores and online until August 2026.
Reuters contributed to this story.
