Ulta Beauty (NASDAQ:ULTA) shares dropped 2% Thursday morning following the announcement that the company will not renew its shop-in-shop partnership with Target (NYSE:TGT) when the current agreement expires in August 2026.
The partnership, which began in 2021, will continue until its expiration, with Ulta Beauty at Target locations operating in-store and online at Target.com. Customers who have linked their Ulta Beauty Rewards and Target Circle accounts will still earn rewards on eligible purchases through the end of the collaboration.
“For 35 years, Ulta Beauty has revolutionized how people experience beauty – bringing together an unmatched assortment from mass to luxury – and our partnership with Target was one of many unique ways we have brought the power of beauty to guests nationwide,” said Amiee Bayer-Thomas, Ulta Beauty’s chief retail officer.
Ulta Beauty emphasized that it remains focused on executing its “Ulta Beauty Unleashed” strategy and plans to launch the Ulta Beauty Marketplace later this year, a curated online destination aimed at engaging new brands and audiences.
Target’s executive vice president and chief commercial officer, Rick Gomez, added that the retailer will “continue to curate a differentiated beauty assortment” featuring both essentials and new products once the partnership concludes.
Both companies affirmed their commitment to maintaining product availability and a seamless shopping experience through the end of the agreement in 2026.
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