Target to Phase Out Ulta Shops, Launch In‑House Beauty Studio Across Stores
After five years of a shop‑in‑shop partnership, Target will replace Ulta Beauty counters with its own Beauty Studio concept, part of a broader store‑revamp strategy.
- Target ends its five‑year Ulta partnership, converting the space to a proprietary Beauty Studio.
- The new concept offers product sales plus on‑site services like makeup consultations and mini‑facials.
- Rollout begins this summer in 300+ stores, with full implementation expected by end‑2026.
- Analysts see the move as a strategic effort to capture discretionary beauty spend and revitalize stores.
Target announced this week that it will discontinue the Ulta Beauty shop‑in‑shop model that has been in place for five years, replacing those spaces with an in‑house "Beauty Studio" concept. The change, slated to begin this summer, reflects Target’s push to refresh its in‑store experience and reclaim shoppers who have drifted to specialty beauty retailers and online platforms.
Core developments
According to a press release cited by USA Today, the new Beauty Studio will occupy the former Ulta footprint in more than 300 Target locations nationwide. The studio will offer a curated selection of makeup, skincare, and hair‑care products alongside on‑site services such as makeup consultations, mini‑facials, and styling appointments. Target says the concept is designed to blend product sales with experiential services, creating a "beauty destination" that aligns with the retailer’s broader merchandising strategy.
WJON reports that the decision follows a strategic review of the partnership with Ulta, which began in 2021 as a pilot and later expanded to a national rollout. Target executives indicated that while the Ulta model helped attract new customers initially, the company now believes an internally controlled concept will provide greater flexibility to tailor assortments, pricing, and service offerings to regional shopper preferences.
The transition will be phased. CBS8.com notes that the first wave of conversions will occur in Target stores slated for renovation during the summer, with a full rollout expected by the end of 2026. Employees currently working the Ulta counters will be offered opportunities to transfer to the new Beauty Studio teams, though details on training and compensation have not been disclosed.
Ulta Beauty, for its part, confirmed that it will close its shop‑in‑shop locations and concentrate on its own retail footprint and digital channels. TheStreet.com quotes an Ulta spokesperson saying the company will "continue to serve Target shoppers through its own stores and e‑commerce platform," emphasizing that the partnership’s end does not signal a broader retreat from the mass‑merchant segment.
Why it matters
The move underscores a broader shift in how mass retailers are approaching the beauty category. Over the past decade, beauty sales have increasingly migrated to specialty chains and online marketplaces, pressuring retailers like Target to innovate. By integrating a proprietary beauty concept, Target can control inventory, pricing, and the customer journey, potentially improving margins that were previously shared with Ulta.
Industry analysts, referenced in C NBC, view the change as part of Target’s larger “big changes” initiative aimed at winning back customers lost to competitors. The initiative includes remodels, expanded private‑label lines, and new technology‑driven services. A Target executive told CNBC that the Beauty Studio is expected to "drive higher basket sizes" by encouraging shoppers to combine everyday essentials with beauty services during a single visit.
From a competitive standpoint, the decision pits Target directly against specialty beauty retailers such as Sephora and Ulta’s own standalone stores. If Target can successfully replicate the curated experience of a dedicated beauty retailer within its larger footprint, it may set a new benchmark for how mass merchants compete for discretionary spend.
Reactions
Target’s leadership frames the rollout as a win for shoppers seeking convenience and expertise under one roof. A senior vice president of merchandising, as reported by USA Today, said the Beauty Studio will "bring professional‑grade services to a broader audience at an accessible price point."
Analysts expressed cautious optimism. C NBC quoted a retail analyst who noted that the success of the concept will hinge on execution—particularly staff training, service quality, and the ability to keep product assortments fresh. The same source warned that if the studio fails to meet the standards set by dedicated beauty retailers, Target could risk alienating the very customers it hopes to attract.
Consumer sentiment appears mixed. Early‑stage social‑media chatter, mentioned in NBC 5 Chicago, includes excitement about in‑store beauty services but also concerns about the potential loss of Ulta’s brand selection. Some shoppers noted that Ulta’s extensive range of indie and prestige brands may not be fully replicated within Target’s curated lineup.
What’s next
Target plans to begin the first round of conversions in July, targeting high‑traffic stores in the Midwest and South before moving to additional markets. The retailer will monitor key performance indicators such as foot traffic, average transaction value, and repeat‑visit rates to gauge the studio’s impact.
Employment implications are also on the radar. While Target says it will offer former Ulta employees positions within the new studios, industry observers will watch how the staffing model evolves, especially regarding the balance between retail associates and service‑oriented specialists.
Looking ahead, Target’s Beauty Studio could serve as a template for other categories where experiential retail is gaining traction, such as health‑and‑wellness or home décor. If the pilot proves successful, the retailer may expand the concept to additional stores beyond the initial 300, potentially reshaping the way large‑format retailers integrate specialty services into their core offerings.