Target, Ulta, and the Future of Beauty Retail
One of the retail stories I’ve been watching closely is what comes next for Target and Ulta. With both companies announcing they will conclude their shop-in-shop partnership, Target has begun rolling out Target Beauty Studio, giving us our first real look at what its next chapter in beauty retail might look like.
The partnership with Ulta helped Target strengthen its position in prestige beauty and introduced consumers to brands they couldn’t previously find in its stores. It was a smart collaboration that benefited both companies. But over the past several years, Target has also been quietly building its own credibility in beauty by continuously expanding its assortment, introducing highly sought-after brands, investing in exclusive launches, and making beauty a category that consumers actively visit the store to shop.
Because of that, Target Beauty Studio doesn’t feel like the beginning of a new strategy; it feels like the next phase of one. Rather than relying on another retailer to shape the experience, Target now has the opportunity to define every aspect of it. It controls the assortment, the merchandising, the storytelling, the service model, and ultimately the relationship it builds with beauty shoppers. That’s a significant shift because beauty has become one of retail’s most valuable categories, as consumers continuously discover new brands, experiment with routines, and build habits that keep them coming back.
What’s particularly interesting is that this comes at a time when Ulta appears to be pursuing almost the opposite strategy. Over the past year, we’ve seen Ulta continue expanding beyond the traditional beauty store through wellness, TikTok Shop, its partnership with Bath & Body Works, and an increasing focus on services and experiences. Rather than limiting itself to its physical stores, Ulta seems focused on becoming part of the consumer’s beauty journey wherever that journey begins.
Target, on the other hand, appears to be strengthening what happens inside its own four walls. From a consumer behavior perspective, I don’t think these companies are responding to different consumer needs. I think they’re responding to the same one in different ways. Both recognize that beauty is no longer just about selling products. It’s about discovery, trust, education, routine, and creating an experience that keeps consumers engaged long after they’ve made a purchase.
What I’ll continue to pay attention to isn’t which brands Target brings in next. I’m interested in how the entire experience evolves. Does Target invest more heavily in education? Will it introduce more beauty services or technology? Will it create new ways for consumers to discover products? And most importantly, will Target Beauty Studio become a destination consumers seek out specifically for beauty, rather than just another department in the store?
It will be fascinating to watch these strategies unfold because I have a feeling they represent two very different visions for the future of beauty retail. One is built around expanding the ecosystem beyond the store, while the other is built around creating a destination experience within it. Over the next few years, we’ll get to see which approach resonates most with consumers.
Dania Khalife
