• Retail Dive

Ulta to open first Target shop-in-shop locations in August

Dive Brief:

  • Consumers will soon be able to purchase premium beauty brands on their next Target run, and on Target.com. In a joint announcement Wednesday, the retailers said Ulta Beauty will open its first shop-in-shop locations in August.

  • The Ulta shop-in-shop at Target will feature products from over 50 top beauty brands, including Anastasia Beverly Hills, Clinique, Drybar, MAC Cosmetics, Morphe, Urban Decay and others, per the release.

  • The companies are planning to open a total of 800 Ulta Beauty at Target locations nationwide. The concept's initial rollout includes over 100 stores.

Dive Insight:

Target is continuing its quest to become a true one-stop shop, even after gaining significant market share in 2020. Now the retailer is looking to solidify its place in the beauty category.

For Ulta, on the other hand, the decision to open hundreds of shop-in-shop locations at Target means reaching new customers and further developing loyalty with its existing ones.

"With two powerhouse retailers, our collective brand love, loyalty and omnichannel expertise will inspire guests and raise the bar for the beauty shopping experience," Christina Hennington, executive vice president and chief growth officer at Target, said in a statement.

The retailers first announced their partnership back in November, highlighting plans to introduce reward offerings for Ulta shoppers that buy at Target and integrate features like the beauty retailer's virtual try-on tool, GlamLab. Ulta shoppers at Target can also receive free shipping on certain orders and access to Target's same-day fulfillment services.

Ulta shop-in-shops at Target will take up 1,000 square feet of space next to Target's current assortment. Target employees will also receive specific training to provide Ulta's consultative services.

Though the announcement was a surprise to some at that time, Ulta CEO Dave Kimbell told Retail Dive in November that the company had been thinking about the partnership "for a little while."

Ulta's shop-in-shops will offer cosmetic, hair, skin, body and fragrance brands like Ariana Grande, Tarte, The Ordinary, Too Faced, Tula Skincare and the Ulta Beauty Collection.

"It won't be everything that Ulta Beauty offers. We see it as a real complement to our full stores — everything that we did, all the experiences and products you can get in our full stores — this will be a segment of that," Kimbell said last year.

Target has forged similar partnerships with other companies in recent years. In February, Target began rolling out mini Apple shops in 17 locations. Similarly, Disney was set to open 25 stores at Target in 2019.

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