When I was in college, Target used to be my go-to destination for clothes, throw pillows, and other random stuff I couldn’t really afford but bought anyway.
And it wasn’t just me. The old joke used to go that you’d walk into Target for milk and paper towels and leave with a $100 credit card bill.
These days, it’s easier to avoid impulse buys at Target, which is not great news for the company.
Target has lost a fair amount of appeal due to unexciting inventory, empty shelves, and disorganized stores. And the company is fully aware that major improvements are needed.
In February, CEO Michael Fiddelke acknowledged that Target had lost trust with shoppers and pledged to do better.
“We weren’t clear enough about who we are as a company,” Fiddelke admitted.
Under Fiddelke’s leadership, Target has a big plan to refresh stores, bring in more trend-forward merchandise, and improve the shopping experience to win back customers.
But just as those efforts are ramping up, Target is preparing to say goodbye to one of its most recognizable in-store partnerships.
Beginning in August, shoppers will start seeing the first signs that Ulta Beauty shop-in-shops are disappearing from Target stores as the companies wind down their partnership.
Target and Ulta Beauty partnership comes to an end
Target and Ulta Beauty’s partnership seemed like a match made in heaven. And when it first launched in 2021, the timing couldn’t have been better.
Back then, consumers were just getting used to the in-store shopping experience after spending much of 2020 staying out of stores and primarily ordering goods online. The convenience of having mini Ulta shops under Target’s roof was hard to beat.
But last year, the companies revealed they’d be parting ways in August of 2026.
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As the partnership winds down, Ulta Beauty sections will begin closing in phases, and Target will replace the dedicated spaces with its own beauty merchandising strategy. While many beauty products will remain available, the dedicated Ulta-branded displays and exclusive in-store concept will disappear.
The move reflects both companies’ evolving priorities.
Ulta Beauty is refocusing on its stand-alone stores and digital business, while Target is working to build up the beauty category without relying on a major retail partner.
Target is betting on its own beauty business
Rather than shrink its beauty department following the end of the Ulta partnership, Target plans to significantly expand it.
During its first-quarter 2026 earnings call, Chief Merchandising Officer Cara Sylvester highlighted beauty as one of the retailer’s highest-priority categories within its broader turnaround strategy.
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“In beauty, we’re preparing for this fall’s launch of our Target beauty studio in more than 600 stores, building on the momentum we’ve been seeing in the beauty category,” she said, noting that the company is “cultivating an assortment of trending beauty products and building out robust plans to support an efficient transition.”
Management also made clear that beauty is central to the company’s long-term growth strategy.
Sylvester told investors that Target is “intentionally leaning in more aggressively behind a set of prioritized assortments and guest needs.”
For consumers, the transition could ultimately mean a broader selection of products under the Target brand.
The shift is a strategic one for Target at a time when it’s looking to win customers back. The U.S. cosmetics market size was estimated at $62.97 billion in 2023 and is expected to grow at a compound annual growth rate of 6.1% through 2030, according to Grand View Research.
“With its higher than average growth rates and robust levels of consumer spending, more big box retailers have turned their focus onto the beauty category,” GlobalData Managing Director Neil Saunders wrote on LinkedIn.
“These investments have helped them edge out drugstore chains as the go-to spot for mass and masstige beauty brands who want to launch and scale fast.”
The challenge for Target, of course, is proving it can deliver an equally compelling beauty destination on its own.
But if Target succeeds, the strategy could help strengthen one of its fastest-growing categories, while giving shoppers another reason to make Target a regular stop again.
Maurie Backman owns shares of Target.
