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Target And Ulta Beauty Team Up

Target And Ulta Beauty Team Up

Target And Ulta Beauty Team Up

Target and Ulta Beauty are formally entering a long-term partnership with a new “shop-in-shop” concept dubbed Ulta Beauty at Target stores. 

Officially announced on Tuesday, the new offering will enable both established and emerging brands in the makeup, skin-care, hair-care and fragrance categories to be featured online as well as in select Target store locations across the country as soon as the beginning of next year. The in-store shops are expected to measure roughly around 1,000 square feet and will be located next to Target’s beauty departments.

“The durable strategy we have built has made Target a top retail destination. The ease and convenience of our stores and fulfillment services provide broad reach and relevance for the curated brands our guests love,” said Brian Cornell, chairman and CEO, Target.

“In partnership with Ulta Beauty, a company that shares our deep guest focus, we are able to expand our growing beauty business with new, exciting brands, an immersive experience, and loyalty benefits to transform how our guests shop for all their beauty needs.”

The partnership comes at a time when sales in the beauty category, more specifically, demand for makeup, have been hit hard. For one, Ulta saw an impact on its bottom line in the quarter ending August 1, with net sales plummeting 26.3 percent to $1.2 billion, down from $1.7 billion from the year before.

Target, however, reported one of its strongest quarters ever in August, with comp-store sales increasing 24.3 percent and profits surging 81 percent year-over-year.

The duo aims to accelerate the demand and revive its sales in the beauty category with a more sophisticated curation strategy and omnichannel offerings.

“Ulta Beauty at Target reflects further evolution in our omnichannel strategy, rooted in unlocking the potential of our physical and digital footprints, creating more seamless shopping opportunities for our loyal guests and continuing to lead the beauty industry. More than ever before, now is the time for innovation in retail,” said Mary Dillon, CEO, Ulta Beauty. “This partnership is an amazing way to further reimagine guest experiences with a partner who shares our company values. We are thrilled to bring our beauty expertise, unparalleled assortment and digital innovation to life in a new channel to delight and deepen loyalty with our existing guests and introduce Ulta Beauty to new guests.”

The collaboration is just one of many efforts Target has made to enhance its customer experience further. Recently, the big-box retailer launched an exclusive, 70-piece toy collection from FAO Schwarz for the holidays. It plans to double down on its employee headcount for the holidays as it looks to prioritize safety and meet the expected demand for contactless shopping and same-day services.

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