Target + Ulta Are Breaking Up. Here’s Why It Matters.

Quick Summary

• What’s happening? Target and Ulta Beauty have mutually agreed not to renew their shop‑in‑shop partnership when the current agreement wraps up in August 2026. Meanwhile, Ulta will be pulling out more than 600 of these beauty mini‑stores inside Target locations.WHIO TV 7 and WHIO Radio+11Ulta Beauty+11Barron's+11The Wall Street Journal+15Reuters+15Star Tribune+15

• Why now? Officially, there’s no dramatic reason given—they’ve just decided to take different paths.The Sun

• What went down? Ulta earlier put a pause on new Target locations to focus on optimizing the existing stores.Reuters+15Retail Dive+15Barron's+15

• What’s next for Ulta? They’re launching the Ulta Beauty Marketplace this year—a curated online space. Plus, they’re doubling down on standalone stores, planning 200 new openings under their “Ulta Beauty Unleashed” growth plan.Ulta Beauty+3Retail TouchPoints+3Store Brands+3

• What’s next for Target? Expect an expanded internal beauty assortment, fresh new brands (many under $20), product‑trial events—and more focus on cost‑effective shopping trips.Ulta Beauty+5Star Tribune+5Store Brands+5

• Wall Street reaction? Stocks dipped—Target fell about 2%, Ulta dropped around 1%.Rolling Out+2Reuters+2

More Color on Why This Surprise Doesn’t Feel So Surprise-y

• Ulta’s strategic shift: CEO Kecia Steelman already flagged a slowdown in expansion earlier this year. She emphasized working smarter, not just wider—leaning into performance over placement.The Sun+10Retail Dive+10Retail Brew+10

• Target’s challenges: Even though beauty was a bright spot (up ~5% in 2024), overall traffic and same‑store sales were slipping. That friction made this reevaluation feel inevitable.Barron's

• Real users’ frustrations: Over on Reddit, customers vented. Many hated having separate checkouts, locked‑down Ulta areas, and staff trails—preferring to just stroll into a standalone Ulta instead.Reddit+2Retail Dive+2

Tone: Not totally shocked

This is us catching a breath—not outraged, but skeptical. Because:

• If your in‑store experience feels like a second-class mini-replica, what’s even the point?

• Ulta’s pivot to digital and standalone stores? Makes smart sense—especially with their own loyalty program and growing direct control of brand narrative.

• Is this a blow to Target’s beauty cred? Maybe. But if they can sniff out cheaper products and keep shoppers engaged, they might pull through.

What This Actually Means to You, the Shopper

Until August 2026:

• You can still earn Ulta Beauty Rewards at Target (if your accounts are linked).

• Ulta sections still exist in stores and online.

• No interruption in access… yet.Store Brands+11Ulta Beauty+11Target Corporation+11

After August 2026:

• Those Ulta-branded corners vanish.

• You’ll either shop Target’s updated in-house beauty aisles or hit a standalone Ulta or Ulta.com.

• Ulta will be pushing its new online marketplace and opening more standalone shops.

Final Thoughts (Because I’ve Got ‘Em)

This feels more like two brands realizing they’ve grown up and need their own stories, rather than sticking together in riskier territory. It was a cool retail experiment, but now they’re recalibrating.

Ulta is about to lean into its DNA: loyalty, expertise, omni-channel control. Target is about to pull more of its own weight—consolidating, refreshing, and hoping customers stick around for the value and discovery.

Fancy way to wrap it up: change is coming, but the beauty isn’t going anywhere—just shifting shape.