Yesterday, according to report, Ulta Beauty and Target Corp. will officially end their “Ulta Beauty at Target” shop-in-shop partnership in August 2026, concluding a five-year collaboration that began with much fanfare in 2021. The companies announced the decision after months of speculation, saying they had mutually agreed not to renew the agreement. Until its conclusion, the concept — which expanded to 610 Target locations, each occupying about 1,000 square feet — will continue in stores and online.
The split comes amid intensifying prestige beauty competition, driven by Sephora’s successful rollout in Kohl’s stores and Amazon’s growing push into the category. Kohl’s has already opened over 1,100 Sephora shop-in-shops, building a nearly $2 billion beauty business, with continued sales growth in 2024. Former Ulta CEO Dave Kimbell previously described the competitive landscape as “fierce,” citing more than a thousand new prestige beauty distribution points in recent years.
Ulta executives emphasized that the Target collaboration was one of many ways to expand brand reach, but signaled a renewed focus on broader growth strategies. Chief Retail Officer Amiee Bayer-Thomas said the company’s “Ulta Beauty Unleashed” plans — including expert services, curated assortments, and immersive in-store experiences — would define its next chapter. Ulta will also launch an online marketplace later this year, following its acquisition of British retailer Space NK, and expand internationally into Mexico and the Middle East.
For Target, the end of the partnership comes during a challenging period. The retailer’s comparable sales have fluctuated, falling 3.7% in 2023 and dipping again in early 2025, even as beauty has remained a bright spot, with $13.2 billion in sales last year — up 5.1% from 2022. Executive Vice President Rick Gomez noted that Target’s beauty business has nearly doubled since 2019, and the retailer is bolstering its assortment with 2,000 new products, 90% priced under $20, plus nearly 50 new brands.
Analysts suggest Target could emerge as a stronger competitor to Ulta by leveraging lessons from the partnership to strengthen its own beauty offering, especially given the companies’ 74% store overlap. While the Ulta shop-in-shops will disappear in 2026, the beauty battle between the two retailers is likely to intensify.
