Target has expanded its beauty department with new brands and mini Ulta Beauty shops in select stores. Ulta and Target have decided to end their partnership that brought Ulta shops to hundreds of Target stores. Target’s stock fell 2% and Ulta’s slid 1% after the announcement. The partnership will end in August 2026, with Target having added over 600 Ulta Beauty shops since 2021.

Ulta Beauty at Target offered a smaller and rotating assortment of products compared to Ulta’s standalone stores. The loss of Ulta products could impact Target’s efforts to attract shoppers and investors. Target’s annual sales have been flat, with expectations of a decline this fiscal year. Shares have also decreased significantly since 2021.

Store traffic for Target has declined year over year, with exceptions around Easter. Target’s leaders highlighted Ulta’s shops as a way to drive store traffic. CEO Brian Cornell emphasized beauty as a growth category for Target, with sales rising nearly 7% in the past fiscal year. Cornell, 66, is expected to depart the company soon.

Analyst David Bellinger believes Target’s in-store operations, retail theft, and staffing issues may have contributed to ending the partnership. Losing the Ulta shop-in-shop relationship is seen as a negative by analysts. Target’s Chief Commercial Officer expressed pride in the partnership and commitment to offering a quality beauty experience.

Ulta’s Chief Retail Officer described the Target deal as a unique way to bring beauty to customers nationwide. Ulta plans to continue executing its beauty strategy and expanding its assortment and services. Both companies expressed confidence in their ability to provide customers with an exceptional beauty experience.

Read more at CNBC: Ulta and Target end deal for in-store shops