Why are Ulta Beauty and Target ending their partnership?

The partnership is ending mutually as Ulta Beauty focuses on its core omnichannel business and Target seeks to refine its beauty assortment.

When will the Ulta Beauty at Target stores close?

All Ulta Beauty shop-in-shop locations within Target stores will close by August 2026.

What is happening with Beauty Brands stores?

Beauty Brands is selectively closing stores in 2025 as part of a broader contraction following past financial difficulties.

Home / Business and Economy / Beauty Retail Shake-Up: Ulta & Target Split

Beauty Retail Shake-Up: Ulta & Target Split

15 Dec

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Summary

Ulta Beauty and Target partnership ends August 2026.
Beauty Brands closes more stores amid financial struggles.
Online beauty sales projected to reach one-third by 2030.

Beauty Retail Shake-Up: Ulta & Target Split

The $450 billion global beauty industry is navigating a complex shift, marked by the impending end of the Ulta Beauty and Target partnership. This collaboration, which began in 2021 and included over 600 shop-in-shop locations, will sunset in August 2026, with both companies pursuing independent strategies.

This retail realignment follows ongoing challenges for brick-and-mortar beauty stores. Beauty Brands, which previously filed for Chapter 11 bankruptcy, is continuing to close locations in 2025, reducing its footprint significantly. These closures underscore the pressures facing physical retail spaces in the evolving beauty market.

McKinsey's latest report indicates a substantial growth in online sales, projected to account for nearly one-third of the global beauty market by 2030. This digital surge, coupled with changing consumer preferences and economic uncertainty, necessitates new growth strategies for industry leaders.