(Reuters) -Ulta will wrap up its mini-store partnership in Target stores after the current contract ends in August 2026, the companies said on Thursday.
The partnership, announced in November 2020 and rolled out in August 2021, aimed at giving Target shoppers greater access to prestige beauty brands.
Shares of Target fell 2%, while Ulta was down around 1%. They did not elaborate on why the partnership was ending.
Target has been facing softening demand as customers pulled back on discretionary purchases due to ongoing worries about inflation and the economy, due to U.S. President Donald Trump’s trade war.
However, beauty segment sales rose 5% in 2024, standing out as a bright spot, compared to a 0.9% decline in overall merchandise sales for the year.
The companies said the Ulta Beauty at Target experience will continue in Target stores and on Target.com until the partnership ceases.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Vijay Kishore)
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