In the latest remake of its beauty section, Target will open Ulta Beauty shops within its stores, bringing the cosmetics chain to more than 100 Target locations in the second half of next year.
The plan is to then expand to hundreds of more Target locations.
Ulta will offer the makeup, skin-care and hair products typically found within Ulta's large stores in a condensed, 1,000-square-foot "shop-in-shop" next to Target's existing beauty section.
The Ulta sections will be staffed by Ulta-trained Target beauty experts to consult with customers on products. They also will feature digital tools such as Ulta's GLAMLab, which allows customers to experiment with different beauty products without physically trying them on.
"It's been a high growth category for us for a number of years," said Target CEO Brian Cornell in an interview. "We are now doubling down on beauty and look at this as a way for us to accelerate our mutual growth in the category, drive incremental marketshare gains for both of our brands and continue to delight millions of guests across the country each and every week."
Target provides a new platform to reach millions of new customers, said Mary Dillon, chief executive of Ulta Beauty.
"It's a very clear opportunity for us in that we'll have hundreds of new points of distribution, ways to reach new guests whether it's in stores or online," Dillon said. "The Target guest is pretty similar to the Ulta guest in many ways. They just go there a lot more often."
Target in 2018 gave its beauty sections a top-to-bottom makeover with displays and customer service more like standalone beauty specialty stores. Target also added more new up-and-coming brands and gave specialized training to employees to offer more hands-on service and offer a product sampling program.
Even during the pandemic, Target's beauty sales have continued to grow. In Target's second fiscal quarter, the retailer reported a 20% growth in sales in beauty products.
Cornell said Target will continue to invest in physical stores and experiential shopping options as physical stores still matter and drive sales even while Target and other retailers have seen an explosion in digital sales.
"Stores still matter," Cornell said. "Guests are looking for a great in-store experience."
