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Ulta and Target to End Mini-Store Partnership in 2026

byLuca Blaumann
August 14, 2025
in Large-Cap, Textiles, Apparel & Luxury Goods
Reading Time: 2 mins read
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Beauty retail collaboration winds down as consumer spending shifts amid economic pressures

Ulta Beauty (ULTA) and Target (TGT) announced Thursday that their in-store partnership will conclude when the current contract expires in August 2026, marking the end of a five-year collaboration that brought prestige beauty brands to Target shoppers.

Launched in August 2021 after being announced the previous November, the “Ulta Beauty at Target” concept aimed to blend Ulta’s specialty beauty expertise with Target’s broad retail reach. The move was designed to give Target customers easier access to higher-end cosmetics and skincare while driving foot traffic for both brands.

While neither company provided a specific reason for ending the initiative, the decision comes as Target grapples with weakening discretionary spending. Many consumers have been tightening their budgets due to persistent inflation concerns and the economic effects of U.S. President Donald Trump’s trade war, impacting demand across several retail categories.

Despite these challenges, beauty has been a rare bright spot for Target. In 2024, the segment grew by 5%, standing in stark contrast to a 0.9% decline in total merchandise sales. The partnership with Ulta was widely seen as a strategic way to capture that momentum, offering a curated selection of prestige products in dedicated mini-stores within Target locations and online at Target.com.

For now, shoppers can still enjoy the Ulta Beauty at Target experience through the official end date in 2026. Shares of both companies dipped following the announcement—Target’s stock slipped 2%, while Ulta’s fell about 1%—reflecting investor uncertainty over the impact of the partnership’s conclusion.

As the beauty market continues to grow and evolve, both retailers will likely seek new strategies to capture consumer attention, even as their high-profile collaboration winds down.

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