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Target has decided to double down on its beauty business as its partnership with Ulta Beauty approaches its end.
Starting this fall, Target will replace its Ulta Beauty shop-in-shops in the more than 600 stores that currently carry Ulta with a new in-house concept called Target Beauty Studio. The company said it plans to expand the concept to additional locations in the future.
This transition will take place ahead of the partnership’s scheduled end in August 2026. Target and Ulta Beauty announced earlier this year that they mutually agreed not to renew their agreement to bring luxury beauty brands to Target stores starting in 2021. Ulta products and benefits benefits will continue to be available through the partnership until the partnership officially ends.
Rather than bringing in another beauty retailer to fill the space, Target is betting that expanding its selection and shopping experience will drive future growth.
What is Target Beauty Studio?
According to Target, the new Beauty Studio will feature more than 80 global and emerging brands, including more than 60 brands that are new to Target customers, offering a shopping experience centered around prestige beauty.
The retailer said shoppers can expect exclusive product launches, trend-focused displays, dedicated beauty team members offering personalized recommendations, beauty-focused Target Circle benefits and a seamless shopping experience across stores, Target.com and the Target app.
Why Target is making changes
During the company’s first-quarter earnings call, Chief Merchandising Officer Carla Sylvester said Target sees beauty as one of its biggest opportunities and is focused on the product categories with the most growth potential.
By operating its own beauty facility, Target will have complete control over product selection, merchandising and customer experience, rather than sharing space with other retailers.
The move comes as beauty continues to outperform many other retail categories despite cautious consumer spending.
According to McKinsey’s 2026 Status Report, the global beauty market is expected to grow approximately 5% annually until 2030. At the same time, shoppers are increasingly looking for value and are gravitating toward lower-priced brands that offer superior performance without the luxury price tag.
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com or X @athompsonUSAT..
