The largest beauty store chain in America has forged a partnership with Target to open shops inside of more than 100 Target locations by next year.
The shops, which will each be about 1,000 square feet and carry makeup, skin care and fragrance products, will operate beside existing beauty sections in Target stores, the companies said Tuesday. The shops are expected to open by mid-2021.
“It’s a combination of two winning retailers that have great momentum in the market that can redefine the category,” Target CEO Brian Cornell told The Associated Press.
The partnership stands to benefit both retailers as the coronavirus pandemic upends shopping habits and more people try to minimize potential exposure to the virus through one-stop shopping. COVID has dampened sales of lipstick as people wear masks, but the skin-care business has enjoyed stronger sales. Both companies should increase their customer base. Combined, Target and Ulta have more than 100 million active loyalty program members across Target Circle and Ultamate Rewards.
Ulta, which is based in Illinois, will train new Target employees to work with the premium products. The shops will also offer Ulta’s popular virtual try-on tools such as GlamLab, free shipping and same-day, curbside pickup as it does at its standalone locations.
Both companies may be able to further encroach on traditional department stores such as Macy’s. Traditional department stores had seen cosmetics sales erode even before the pandemic as big box stores modernized their beauty sections and as specialty cosmetics chains such as Sephora and Ulta expanded rapidly.
“More than ever before, now is the time for innovation in retail,” said Mary Dillon, CEO of Ulta Beauty.
Shares of Target rose a little more than 1%, while Ulta’s stock was up roughly 5%.
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