Target Corporation and Ulta Beauty have announced a groundbreaking, long-term strategic partnership, branded as Ulta Beauty at Target, set to reshape the beauty retail environment. This innovative “shop-in-shop” concept will bring together established and emerging prestige beauty brands, offering them both online and in select Target stores nationwide starting in 2021. This collaboration exemplifies effective Target Partnering, leveraging the strengths of both retail giants to create a unique and enhanced shopping experience for consumers.
This partnership is a strategic move by two leading retailers known for their curated selections, strong omnichannel presence, and customer-focused approaches. By joining forces, Target and Ulta Beauty are creating a novel avenue for beauty enthusiasts to discover and purchase high-quality prestige beauty products. For Ulta Beauty, this target partnering strategy allows them to extend their reach to millions of Target’s loyal customers, capitalizing on the convenience and accessibility of Target’s shopping ecosystem. Simultaneously, it offers beauty brands a significant opportunity to expand their market presence through an industry-leading omnichannel retail platform.
Brian Cornell, chairman and CEO of Target, emphasized the strategic nature of this collaboration, stating, “The durable strategy we have built has made Target a top retail destination. Partnering with Ulta Beauty, a company that shares our deep guest focus, allows us to significantly enhance our beauty business by introducing new, exciting brands and an immersive experience.” This highlights how target partnering is central to Target’s growth strategy, enabling them to continuously innovate and elevate their offerings.
Mary Dillon, CEO of Ulta Beauty, echoed this sentiment, noting, “Ulta Beauty at Target represents a significant evolution in our omnichannel strategy. This target partnering approach allows us to unlock the potential of both our physical and digital footprints, creating more seamless shopping experiences for our guests. Innovation through strategic partnerships is crucial in today’s retail landscape, and this collaboration with Target is a testament to that.”
Ulta Beauty at Target: A Deep Dive into the Shop-in-Shop Experience
The Ulta Beauty at Target initiative will initially launch in over 100 Target locations in 2021, with plans for further expansion in the future. These locations are strategically chosen to complement Ulta Beauty’s existing store network, attracting new customers to the brand while building upon Target’s already robust beauty assortment. This thoughtful site selection demonstrates a key aspect of successful target partnering: synergistic growth and market expansion for both parties.
These distinctive, branded shop-in-shops, averaging approximately 1,000 square feet, will be strategically placed adjacent to Target’s existing beauty sections. The design and ambiance will mirror the welcoming and engaging atmosphere of Ulta Beauty stores, focusing on discovery of both well-known and up-and-coming prestige brands. To ensure a high level of customer service and product expertise, Target will invest in training newly hired team members to become knowledgeable consultants on prestige beauty offerings, mirroring Target’s commitment to expert guest service. Furthermore, the integration of Ulta Beauty’s digital tools, such as GLAMLab, a virtual try-on application, will enhance the in-store experience, offering customers innovative ways to explore beauty products. This commitment to immersive experiences is a direct benefit of this target partnering approach, elevating the standard for beauty retail within Target stores.
For online shoppers, the Ulta Beauty at Target experience will extend to Target.com and the Target app, replicating the elevated look and feel of Ulta Beauty’s digital presence. Customers will benefit from free shipping on qualifying online orders and Target’s convenient same-day fulfillment services, including Drive Up, Order Pickup, and Shipt delivery at participating locations. This seamless online-to-offline integration is a critical component of this target partnering strategy, catering to the evolving needs of modern consumers.
Expanding Customer Reach and Loyalty through Strategic Alliances
Collectively, Target and Ulta Beauty boast over 100 million active loyalty program members across Target Circle and Ultamate Rewards. This target partnering initiative aims to leverage this massive combined loyalty base, creating integrated opportunities to reward customers who shop at Ulta Beauty at Target. By cross-promoting loyalty programs and offerings, both retailers aim to enhance customer retention and drive increased engagement.
Target’s recent revitalization of its beauty business, marked by expanded product ranges and enhanced in-store experiences, has resulted in significant sales growth and market share gains. Similarly, Ulta Beauty, as the leading beauty retailer in the U.S., holds strong brand recognition and is a premier destination for beauty discovery and services, particularly resonating with younger demographics and the growing Latinx consumer base. This target partnering is built upon the complementary strengths of both brands, creating a synergistic effect greater than the sum of its parts.
The Ulta Beauty and Target partnership is poised to redefine beauty retail, creating new opportunities for both consumers and brand partners. By strategically combining their resources and expertise, this target partnering venture is set to lead the retail industry forward, demonstrating the power of collaboration in a dynamic market.
About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 1,900 stores and at Target.com. Since 1946, Target has given 5 percent of its profit to communities, which today equals millions of dollars a week. For the latest store count or for more information, visit Target.com/Pressroom. For a behind-the-scenes look at Target, visit Target.com/abullseyeview or follow @TargetNews on Twitter.
About Ulta Beauty
Ulta Beauty (NASDAQ: ULTA) is the largest U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. Since 1990, the Company has brought together all things beauty, all in one place with more than 25,000 products from approximately 500 well-established and emerging beauty brands across all categories and price points, including Ulta Beauty’s own private label. Ulta Beauty also offers a full-service salon in every store featuring hair, skin, brow, and make-up services. Ulta Beauty operates retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials and social content. For more information, visit www.ulta.com.
Forward‑Looking Statements
Statements in this release regarding the timing and number of Target stores that will include Ulta Beauty at Target; the assortment, availability, timing, and pricing of products available in stores and online; and the shopping experience and benefits of the strategic partnership are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those forward-looking statements. The most important risks and uncertainties for Target are described in its public filings with the Securities and Exchange Commission (the SEC), including risk factors contained in its Annual Report on Form 10-K for the fiscal year ended February 1, 2020, as such were supplemented in its Quarterly Report on Form 10-Q for the quarterly period ended May 2, 2020. The most important risks and uncertainties for Ulta Beauty are detailed in its public filings with the SEC, including risk factors contained in its Annual Report on Form 10‑K for the fiscal year ended February 1, 2020, as such were amended and supplemented in its Quarterly Report on Form 10-Q for the quarterly period ended May 2, 2020. Forward-looking statements speak only as of the date they are made, and neither Target nor Ulta Beauty undertake any obligation to update any forward-looking statement.
