Ulta Faces Exit from 600+ Target Stores While Boosting AI-Driven Loyalty
ULTA•Target will replace Ulta Beauty shop-in-shop locations in over 600 stores this fall with its in-house Beauty Studio concept, ending their partnership and reducing Ulta's physical presence. Ulta is simultaneously enhancing its loyalty program with AI-driven personalization using customer data to deepen engagement and strengthen its digital platform.
1. Target to Replace Over 600 Ulta Shops
Beginning this fall, Target will remove Ulta Beauty shop-in-shop locations from more than 600 stores and convert the space to its own in-house Beauty Studio concept, officially ending a multi-year collaboration.
2. Shift to In-House Beauty Studio Concept
The new Beauty Studio will feature prestige beauty brands curated and merchandised by Target, offering services such as makeup consultations and product demonstrations under Target’s direct management.
3. Ulta's AI-Driven Loyalty Enhancements
Ulta is upgrading its loyalty program by integrating AI analytics and loyalty data to deliver tailored product recommendations, personalized promotions and targeted digital content via its app and in-store systems.
4. Strategic Impact on Ulta Beauty
Losing footprint in over 600 Target stores may weigh on Ulta’s store-based sales, but its strengthened AI-powered loyalty and digital initiatives aim to offset the impact and drive future growth.
