Target aimed to shut out rival cosmetics brands Ulta and Sephora in a recent lease agreement, and hit the bull’s-eye. The discount store company is expanding into Jackson Heights, Queens, and will be a part of a new 80,000-square-foot building being developed by Sun Equity Partners and the Heskel Group.
The feisty requirement to exclude the cosmetic companies is viewed as an attempt to protect Target’s own makeup and beauty product sales. This demand is not out of character for Target either, as the deal to open a store in Herald Square come fall 2017 also banned Ulta. Sephora would have faced a similar fate had it not already leased within the building.
Set to occupy 23,580 square feet of the new structure in Jackson Heights, Target will surely be the center of attention because the lease also forbids competitor supermarkets, pharmacies, and convenience stores, as well as down-market venues. So, Ulta and Sephora should not feel too singled out, as Target’s strategy is consistent across the board: deal with the competition by not dealing with them.