What: Ulta Beauty and Target announce mutual decision not to renew their four-year partnership when it expires in August 2026, ending a collaboration that brought Ulta's cosmetic products to 600 Target stores and website.

Why it is important: This development signals a significant shift in beauty retail partnerships, as major retailers reassess their collaborative strategies amid changing market dynamics and consumer preferences.

Ulta Beauty and Target have announced they will not renew their partnership when it concludes in August 2026, marking the end of a strategic collaboration launched in 2021. The partnership, which currently operates in approximately 600 Target stores, originally provided Ulta with expansion opportunities during the pandemic while offering Target access to higher-end cosmetics through dedicated 1,000-square-foot sections. In April, Ulta CEO Kecia Steelman had already indicated a pause in opening additional locations with Target, citing the need to evaluate operational efficiencies. The announcement comes as Target faces broader challenges, including approximately 10 quarters of flat or declining sales and internal concerns about competitiveness, as revealed in a June employee survey. The timing also coincides with Target's search for a successor to CEO Brian Cornell, who plans to step down after more than a decade in the role.

IADS Notes:

The planned dissolution of the Ulta-Target partnership in 2026 reflects broader transformations in beauty retail strategy. According to BeautyInc in July 2025, Ulta Beauty's acquisition of Space NK and international expansion plans demonstrated its pivot toward owned retail concepts rather than partnerships. This strategic shift followed Business of Fashion's October 2024 report of Ulta's ambitious expansion plans, including 200 new stores and $692 million in store upgrades. The evolution aligns with broader industry trends, as Business of Fashion reported in November 2024 that department stores were revamping their beauty counters with interactive elements to compete with specialty retailers. Retail Dive's November 2024 coverage revealed Ulta's implementation of a market fulfilment centre model to enhance omnichannel capabilities, suggesting a focus on owned infrastructure. The Journal du Net reported in April 2025 that beauty e-commerce had become a crucial growth driver, with social commerce accounting for 68% of global beauty sales, highlighting why retailers are prioritizing direct control over their beauty operations.

Ulta Beauty, Target to End Partnership