What Ulta Beauty’s Deal With Target Means For Shoppers

Target (TGT) has its bullseye set on the beauty market. The retailer announced a tie-up with Ulta Beauty (ULTA) on Tuesday that will expand the beauty aisles of select stores nationwide.

The shop-in-shop concept will roll out in more than 100 Target stores next year and will create a new way for Target customers to experience the Ulta brand. Target said it will also expand the Ulta shop-in-shop concept to hundreds of more locations over time.

The Ulta shops will extend about 1,000 square feet and offer access to emerging and established beauty brands located in close proximity to Target’s existing beauty section. Target employees will serve as in-store beauty experts and offer digital discovery tools such as GLAMLab – a virtual try-on tool for safe makeup trials.

Target will also provide free shipping on qualifying online Ulta orders as well as Drive-Up, Order Pickup, and Shipt same-day delivery at participating locations. Ulta beauty products will be available at Target.com in the second half of 2021.

“More than ever before, now is the time for innovation in retail,” Mary Dillon, CEO at Ulta Beauty, said in a statement. “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.”

This is not the first time that Target has partnered up for a shop-in-shop concept. In August 2019, it teamed up with Disney to offer small shops of the famed brand within its stores, providing toys and interactive experiences for customers.

The venture with Ulta is also reminiscent of the JC Penney link up with Sephora that almost went awry earlier this year as the department store retailer was faltering and heading towards bankruptcy. While JC Penney did eventually find itself in bankruptcy, it was able to mend its relationship with Sephora after filing suit against the beauty company in May. Today, JC Penney continues to offer Sephora shops within its stores.

Shares of Target were trading at $157.28 as of 9:43 a.m. EST on Tuesday, up $2.37 or 1.53% while shares of Ulta were trading at $271.33, up $24.13 or 9.76%.