Ulta Beauty and Target Corp. are calling it quits after a 5-year run.
The retail giants “have mutually agreed not to renew the Ulta Beauty at Target shop-in-shop partnership” when their contract expires in August of 2026, the companies announced in a joint statement.
Until then, Ulta Beauty at Target marketplaces will continue in more than 600 Target locations and online. Customers with linked rewards will continue to earn Ultamate Rewards points on Target Circle accounts.
The partnership began in 2021 as a conspicuous retail experiment in response to losses suffered from the COVID-19 pandemic.
For Ulta, it was a way to replenish a consumer base dwindled by shuttered brick-and-mortar stores and a reduced demand for beauty supply.
Target, in return, added diverse, cult-favorite, and prestige beauty brands to its lineup, a slam-dunk to increase the value of its average basket.
Both retailers are pursuing comeback strategies after a rough few years. Ulta unveiled its Ulta Beauty Unleashed plan in January 2025 in response to a dive in its net sales and market share.
The strategic plan included international expansion, high-visibility partnerships, and big shakeups among the beauty giant’s C-suite, retail offerings, and marketing strategies.
Ulta reported months later in May a strong start to 2025: first-quarter net sales of $2.8 billion, a 4.5% YOY increase.
Target, in turn, is struggling against five consecutive months of declines — the result of customer backlash to its decision to roll back diversity, equity, and inclusion efforts.
In March, Target announced a strategic plan aimed at driving more than $15 billion in sales growth by 2030. The strategy includes bringing more curated selections to the retail giant via similar partnerships with DTC brands such as Warby Parker eyewear and Parachute home textiles.
After the split, Target says it’ll continue offering a variety of beauty brands, while Ulta plans to launch its own multi-vendor e-commerce platform, the Ulta Beauty Marketplace.