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Ulta Beauty at Target Prepares for August Launch

July 26, 2021 BeautyMatter
July 26, 2021
Target

Ulta Beauty at Target rolls out to 100 Target stores and on Target.com, in August with plans to reach a total of 800 locations. The shop-in-shop concept will feature more than 50 prestige beauty brands, including Anastasia Beverly Hills, Ariana Grande, bareMinerals, Bumble and bumble, Clinique, Drybar, IT Cosmetics, Jack Black, Juvia's Place, MAC Cosmetics, Madison Reed, Morphe, Pattern, Philosophy, Smashbox, St. Tropez, Sunday Riley, Tarte, The Ordinary, Too Faced, TULA Skincare, Ulta Beauty Collection, Urban Decay and many others.

Ulta Beauty at Target is unmatched in the industry, bringing guests the opportunity to discover new prestige brands while they shop Target's incredible beauty assortment. This unique partnership is another way we continue to elevate the guest experience across our multi-category business to drive traffic and preference as we meet guests' needs in innovative ways," says Christina Hennington, executive vice president and chief growth officer, Target. "With two powerhouse retailers, our collective brand love, loyalty and omnichannel expertise will inspire guests and raise the bar for the beauty shopping experience.

Each shop-in-shop will be roughly 1,000 square feet, about one-tenth the size of a typical Ulta store, and will be located near the existing Target beauty section featuring specialized displays, discovery zones and on-trend, season-specific products and staffed by team members that have received specific training to provide Ulta's consultative services.

As the retail and beauty industries continue to evolve, we take pride in being leaders that continually redefine and elevate guest experiences. Ulta Beauty at Target reflects our commitment to drive the industry forward and keep our guests meaningfully engaged," says Kecia Steelman, chief operating officer, Ulta Beauty. "Our dynamic teams have worked together to create a disruptive, exciting way to discover prestige beauty with a thoughtfully curated assortment and knowledgeable, approachable experts to serve as beauty gurus.

The immersive experience will also live on Target.com and in the Target app with an elevated look and feel. Guests who shop Ulta Beauty at Target will benefit from rewards from both Target Circle and Ultamate Rewards. Those shopping online will enjoy free shipping for qualifying orders and Target's same-day fulfillment services, Drive Up, Order Pickup and same-day delivery with Shipt at participating store locations.

Jefferies retail analyst Stephanie told CNBC the deal will be "a delicate balancing act," since Target, Ulta and the prestige brands will all need to feel like they are winning. Unlike the Kohls relationship where Sephora is leasing space, Target is building the shops, staffing them, and leveraging Ulta's relationships with prestige brands.

"The three can jointly win — but I don't think it's going to be equal," she said. "There are natural points of tension that are going to emerge and the consumer is ultimately going to dictate who wins." Target will be looking for prestige beauty brands to drive sales in its beauty department, Ulta needs to entice the Target consumers to its stand-alone stores, and the prestige brands need to feel like they are reaching new consumers.

Wissink said the replenishment purchases and where they happen will determine the partnership's success.

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