Ulta Beauty and Target to end shop-in-shop partnership in 2026

Published 14/08/2025, 14:06
Ulta Beauty and Target to end shop-in-shop partnership in 2026

BOLINGBROOK/MINNEAPOLIS - Ulta Beauty (NASDAQ:ULTA), currently trading near its 52-week high with a market capitalization of $23.9 billion, and Target Corporation (NYSE:TGT) announced Thursday they will not renew their shop-in-shop partnership when their current agreement expires in August 2026. According to InvestingPro data, Ulta Beauty has demonstrated remarkable strength with a 62% return over the past year.

The companies said the Ulta Beauty at Target experience will continue to operate in Target stores and on Target.com until the agreement concludes. Customers with linked rewards accounts will continue earning Ulta Beauty Rewards on eligible purchases made at Target locations through the end of the partnership.

The collaboration, which began in 2021, was designed to expand access to prestige beauty products and allow customers to link their Ulta Beauty Rewards and Target Circle accounts.

"As we continue to execute our Ulta Beauty Unleashed plans, we’re confident our wide-ranging assortment, expert services and inspiring in-store experiences will reinforce our leadership in beauty," said Amiee Bayer-Thomas, chief retail officer at Ulta Beauty. The company’s confidence is supported by its strong financial health, with InvestingPro analysis showing robust revenue of $11.4 billion in the last twelve months and a solid return on equity of 50%.

Rick Gomez, executive vice president and chief commercial officer at Target, stated, "We look forward to what’s ahead and remain committed to offering the beauty experience consumers have come to expect from Target."

Both retailers emphasized their commitment to maintaining product availability and a seamless shopping experience through the end of the partnership.

Ulta Beauty, which operates approximately 1,500 stores across the U.S., plans to launch Ulta Beauty Marketplace later this year as a curated online destination for new brands. Meanwhile, Target indicated it will continue developing its beauty assortment for its customer base.

The announcement was made in a press release statement from both companies.

In other recent news, Ulta Beauty has made significant strides with its acquisition of British beauty retailer Space NK from Manzanita Capital. This strategic move marks an expansion into the UK market, with Space NK continuing to operate as a standalone subsidiary under its current management. The financial terms of the acquisition have not been disclosed, but reports suggest the deal is valued at over £300 million. This acquisition is expected to bolster Ulta’s international expansion plans, as highlighted by Raymond James, which raised its price target for Ulta Beauty to $580. DA Davidson also increased its price target to $585, citing strong comparable sales estimates for the second quarter of 2025. Both firms maintain positive ratings on Ulta Beauty, with DA Davidson particularly noting the acquisition’s potential impact. These developments come amid Ulta’s ongoing efforts to enhance its Wellness category and executive team, including the search for a new CFO.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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