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.