Ulta and Target end deal for in-store shops
Target added new brands to the beauty department. Increasing number of stores, mini Ulta beauty stores with prestige brands.
Melissa Repko | CNBC
Ulta Beauty And Aim He said on Thursday that they decided to end an agreement that opens makeup and beauty shops in hundreds of Target store.
Target and Ulta shares fell about 1%on the day.
In a news bulletin, companies, according to a company spokesman, said the partnership that adds some of the products of Ulta to Target’s website will end in August 2026. Target, since 2021 has added more than 600 ulta beauty stores to their stores. This is almost one third of Target’s 1,981 US stores.
Ulta Beauty in Target stores carried a smaller and rotating product range in its own stores of the Beauty retailer. He was assigned by Target employees.
The loss of popular beauty retailer’s products may be another blow to target both shopping and investors trying to get back. The annual sales of the target have been roughly fixed for four years and expects sales to reject this financial year. The company’s shares are worth less than half of the return when they reached a closing closing of $ 266.39 in 2021. In addition, both the pride collection and the basic diversity, self -esteem and attempts to include the return.
According to Placer.Ai, an analysis company that uses anonymized data from mobile devices to estimate the general visits to the target, the company’s announcement decreased approximately every week after the week of January 27th. The target traffic rose from year to year in four weeks before January 27th.
The only exception of this trend, the company’s data was two weeks on both sides of Easter, where traffic increased less than 1% each year.
In their calls for earnings and investor presentations, the leaders of the Minneapolis -based company launched Ulta’s stores and fashionable beauty brands as a way to use store traffic.
CEO Brian Cornell stressed Beauty as a category of growth for the target in a presentation of an investor in New York in March, as a reason for relying on Target’s long -term business. He said that the company gained market share in beauty and that its sales in the category increased by about 7% in the financial year, which ended in early February.
Brian Cornell, the CEO of the target, is expected to leave the 66 -year -old company soon. For a long time, the target leader renewed its contract for about three years in September 2022 after the retirement age of the Board has completed the age of 65.
David Bellinger, an analyst of Mizuho Securities, including retailers, said in a stock survey on Thursday that Target’s “In -Store Operations” of Target contributed to the companies that ended the problems with retail theft and inadequate personnel in stores.
“In general, we see that Ulta has lost its in -store relationship as a negative development, and something else will have to grapple Target’s next CEO.”
In a statement on Thursday, Target Chief Commercial Officer Rick Gomez said that the discounter was proud of our common success with the experience of Ulta Beauty and our experience together.
“We look forward to what is ahead of us, and we are determined to offer the beauty experience that consumers expect from Target – one focuses on a mixture of an exciting beauty brands with a constant innovative value.” He said.
Ulta’s chief retail officer Amiee Bayer-Thomas described the target agreement as “one of the many unique ways we bring to guests around the country.”
“As we continue to implement our Ulta Beauty Unleashed plans, we are sure that our extensive product range, our expert services and our inspirational experiences will strengthen our leadership in beauty and define the next part of our brand.” He said.
