Observed Signal · Aug 18, 2026 · Partnership · Source: Retail Dive · Impact: 3/5 · Sentiment: Neutral
Target ends Ulta partnership, launches Beauty Studio
Target is replacing its roughly 600 Ulta Beauty shop‑in‑shops with a new Target Beauty Studio, launching Sept. 10 in more than 600 stores and on Target.com. The curated department — part of Target’s broader turnaround after stronger Q1 results and a year‑over‑year increase in beauty sales — features discovery and education through rotating displays, mini assortments, in‑store testing and dedicated “beauty advisers.” It will carry more than 1,600 products from 90 brands, with over two‑thirds new to Target; several direct‑to‑consumer and indie brands are using the Studio to enter or expand brick‑and‑mortar distribution. The change ends Target’s shop‑in‑shop partnership with Ulta and associated account linking; the rollout ties into Target Circle loyalty offers and includes an in‑store launch celebration on Sept. 26.
A major retailer ending a long-standing shop-in-shop partnership and replacing it with a proprietary store concept affects retail merchandising, loyalty data control and competitive dynamics — relevant to retail media and commerce strategies but not industry-shifting.
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Key Takeaways & Evidence Grounding
- Target and Ulta’s shop‑in‑shop partnership has ended and Ulta‑Target account linking is no longer available.
- Target Beauty Studio launches Sept. 10 in more than 600 stores and on Target.com, replacing the Ulta shop‑in‑shops.
- The Studio will offer 1,600+ products from 90 brands, with over two‑thirds of the brands new to Target.
- In‑store features include rotating displays, mini product assortments, product testing and dedicated "beauty advisers."
- The rollout ties to Target Circle loyalty offers and includes an in‑store launch event on Sept. 26.
Connected Companies & Entities
10 Entities mapped“Target and Ulta Beauty’s shop-in-shop partnership came to an end Sunday, but that isn’t the end of Target’s efforts to win market share in t...”
“Target and Ulta Beauty’s shop-in-shop partnership came to an end Sunday, but that isn’t the end of Target’s efforts to win market share in t...”
““Even without Ulta, Target’s beauty business is huge,” GlobalData Managing Director Neil Saunders told Retail Dive in emailed comments....”
“Walmart has also delved deeper into the beauty category....”
“Prestige retail beauty sales in the U.S. grew 7% year over year to $17.1 billion during the first six months of 2026 and mass retail sales i...”
“Ally McPartland, beauty and luxury manager in Kearney’s consumer and retail practice, said in an emailed comment to Retail Dive....”
“Specialty retailers — such as Sephora and Ulta — are no longer the only major players in beauty....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Target K-Beauty Studio Expands Retail Reach
Target has launched its Beauty Studio, replacing former Ulta Beauty shops in its stores, featuring over 1,600 products from 90 brands. The retailer significantly expanded its K-beauty assortment, quadrupling it with more than 150 new products from over 10 new brands. The Beauty Studio includes six K-beauty brands, five of which are new to Target, such as Amuse, Kaja, Rom&nd, Dr. Melaxin, Purito Seoul, and Sungboon Editor. This move reflects a broader shift of K-beauty brands into mass retail, as they previously depended on specialty retailers like Sephora and Ulta. Target aims to meet growing consumer interest in K-beauty by offering accessible prices and innovative products. However, the new assortment has been criticized for its lack of Black-owned brands, with only two identified among the 90 brands.
Target Beauty Studio Includes Almost No Black-Owned Brands
Target is launching "Target Beauty Studio" on Sept. 10 in more than 600 stores and online, a curated assortment of over 1,600 products from 90 largely new-to-Target brands that replaces former Ulta shops. Modern Retail found only two brands in the 90-brand list that appear to be Black-owned or -founded: Briogeo and Glamazon Beauty. Target says the collection emphasizes global brands and that nearly 40% of the brands were founded by "diverse" founders, but it did not define that term. The limited representation of Black-founded brands has renewed criticism of Target’s post-DEI changes, supplier engagement and its historical relationships with Black entrepreneurs; industry consultants urged transparency and potential commitments such as the Fifteen Percent Pledge.
Ulta Emphasizes Exclusives Amid Target Rivalry
Ulta Beauty reported strong fiscal Q2 results and raised its full-year guidance while downplaying competitive pressure from Target’s new Beauty Studio. Q2 net sales rose nearly 9% year-over-year to $3.0 billion, with comparable-store sales up 3.8%. Ulta now expects full-year net sales growth of 6.7%–7.2% and comps of 3.2%–3.7%, up from prior guidance. CEO Kecia Steelman said the company will focus on differentiation, including exclusive merchandise, and remain willing to use promotions as needed. Makeup comps were nearly flat as prestige growth offset weaker mass makeup; fragrance and hair care grew. Analysts from William Blair, TD Cowen and Jefferies noted the beat but flagged tougher comparisons and competitive intensity in the back half of the year.
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