The beauty aisle divorce
Grab your mascara and your popcorn—the Ulta Beauty and Target partnership is heading for a dramatic finale. On Thursday, the two companies announced they won’t renew their agreement when it expires in August 2026, meaning the roughly 600 Ulta “shop-in-shops” inside Targets will soon vanish. Until then, you can still snag your favorite brow gel while buying paper towels—but the clock is ticking.
The four-year partnership, launched in 2021, was a win-win: Ulta reached Target’s massive foot traffic, and Target got to say, “See? We’re cool, we sell luxury beauty too.” But with changing consumer habits, inflation, and some messy sales numbers, both brands seem ready to go their separate ways.
Wall Street throws some shade
Stock traders, apparently not fans of losing their favorite makeup aisle, reacted with a collective eye-roll. Ulta shares dipped about 1%, and Target slipped nearly 2% on Thursday after the announcement. It wasn’t exactly a market meltdown, but the message was clear: investors weren’t thrilled to see this high-profile retail marriage hit the rocks.
Why the split?
It’s not you, it’s… well, actually, it is you. Target has been wrestling with sluggish growth, falling in-store traffic, and online competition. Inflation has shoppers trimming non-essential spending—turns out, people buy fewer luxury lipsticks when they’re busy paying off grocery bills. On top of that, Target faced consumer boycotts earlier this year over changes to its diversity, equity, and inclusion (DEI) policies, which didn’t exactly help sales momentum.
For Ulta, the breakup isn’t a retreat, but a reroute. Chief Retail Officer Amiee Bayer-Thomas said Ulta’s “Unleashed plans” will focus on expanding its own stores, services, and product assortment. Translation: Ulta wants to control the glam, not share the spotlight in Target’s fluorescent-lit aisles.
Rewards points still safe—for now
Before you panic about losing your hard-earned Ulta Rewards or Target Circle points, here’s some good news: you can still earn Ulta Beauty points on purchases made in Target through August 2026. After that? You’ll have to visit an Ulta store or shop online to keep racking up those rewards. So yes, your points balance is safe—for now.
By the numbers: Beauty vs. Big box
- Ulta Beauty: First-quarter 2025 sales were up 4.5% to $2.8 billion, proving that people still love bronzer even during economic uncertainty. Market cap? $23.77 billion.
- Target: First-quarter 2025 revenue was $23.85 billion, falling short of analyst expectations and down 3% year-over-year. Market cap? $47.14 billion. Earnings per share came in at $1.30, missing forecasts of $1.61.
Despite the breakup news, Ulta is still growing, while Target’s beauty aisle is about to look a lot less… well, beautiful.
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So, what now?
Come 2026, hundreds of Ulta mini-stores inside Target will disappear, leaving shoppers to wonder: will this mean more empty aisles filled with clearance bins? Or will Target double down with its own beauty brands (cue a million knockoff palettes)?
Meanwhile, Ulta will lean harder into its standalone stores—complete with salons, endless rows of hair products, and that dangerous checkout line filled with travel-size “just one more thing” temptations.
As for beauty fans, it may mean making two shopping trips instead of one. Tragic? Maybe. But hey, if you’re loyal to Ulta, you probably didn’t mind an extra stop for setting spray anyway.
Bottom line
The Ulta-Target breakup is the retail equivalent of a celebrity divorce—everyone’s being polite, but we all know they’re already dividing the assets. By 2026, 600 mini-Ultas will be history. Until then, grab your favorite serum while you still can—and start practicing how you’ll explain to your wallet why you now “have to” visit two stores instead of one.
