Target and Ulta Beauty end their in-store partnership, leaving retailers to fill the space

Target is moving to end its partnership with Ulta Beauty, according to a report published late June that cited a joint announcement from the two companies. The deal, launched in a period when retailers were competing to bring more specialty beauty shopping inside big-box stores, was scheduled to run for five years. Now, both sides say they have agreed to end the collaboration, setting up changes to the beauty floor plan in Target locations that previously featured Ulta-brand shop-in-shop space.

In the announcement referenced by the report, Ulta Beauty and Target said the decision was mutual. Target’s public comment was described as brief, focused on the impending end of the partnership rather than on a detailed schedule or an alternative retail concept to take over the space. The lack of specifics means customers who have relied on Ulta’s in-store presence at Target will need to wait for further guidance on how beauty shopping will be handled after the transition.

Ulta and Target’s relationship reflected a broader retail strategy: specialty beauty retailers seek more traffic by placing branded beauty counters inside existing store networks, while department stores use the arrangement to differentiate categories that are often contested by e-commerce and other chains. The Ulta setup within Target stores also offered a recognizable brand experience, one that could be used to draw shoppers specifically for beauty items, not just the general department assortment.

For Target, the end of the partnership raises operational questions that the cited report does not answer. The most immediate issue is what happens to Ulta-branded selling space, including signage, fixtures, and the localized merchandising model that supported Ulta’s assortment within Target. Even if Target intends to keep carrying beauty products, the format of that offering, including whether it will be organized under Target’s own beauty brand, by another third-party partner, or through a remodeled layout, is not laid out in the publicly referenced statement.

For Ulta Beauty, the unwinding also implies a change in distribution and customer acquisition. The value of the partnership was traffic and brand visibility inside Target stores, but it also carried the constraint of sharing space within a general retail environment. After the partnership ends, Ulta would be expected to lean further on its standalone store network and online channels, but the report does not provide additional details on how Ulta plans to reallocate any store-in-store activity across its broader portfolio.

What comes next is the key open question. The report highlights that the collaboration is ending, but it does not provide a clear answer to who, or what, will replace Ulta at Target. Target has not disclosed, in the referenced coverage, a specific replacement partner or concept. That uncertainty may persist until the companies publish more operational timelines, including when closing or conversion efforts will begin and which locations will change first.