Target has ended its partnership with Ulta Beauty to open hundreds of makeup and beauty shops inside its stores, a move that could further strain the struggling retailer’s sales.
As part of the deal, Target had added over 600 Ulta shops since 2021, carrying a smaller selection of Ulta’s merchandise alongside its own products. The joint venture aimed to drive traffic to Target stores and boost sales, but it appears to have fallen short.
Target’s annual sales have remained flat for four years, and the company expects a decline this fiscal year. Shares have lost more than half their value since 2021, when they reached an all-time high of $266.39. The retailer has also faced backlash over its Pride collection and diversity initiatives.
The loss of Ulta’s products could be another blow to Target as it seeks to regain shopper loyalty and investor confidence. The company had touted the partnership as a key driver of store traffic, but data suggests that foot traffic has been declining at an alarming rate.
Target’s CEO Brian Cornell is expected to depart soon, and analysts point to issues with in-store operations, retail theft, and staffing shortages as major contributors to the deal’s demise. Despite this, Target remains committed to offering a beauty experience, promising a mix of new brands and unbeatable value.
Source: https://www.cnbc.com/2025/08/14/ulta-and-target-end-deal-for-in-store-shops.html