Following in the footsteps of Sephora and JC Penney’s, CNBC explains that Target and Ulta Beauty announced that they plan on partnering up and placing mini Ulta shops inside Targets all over the country. Target CEO Brian Cornell says that over 100 Target locations will start opening these smaller versions of Ulta starting the second half of 2021. If you have to go shopping for cute clothes, groceries, home goods and now high-quality makeup, Target is going to be your store.
Each of these mini Ulta shops is going to be about 1,000 square feet and will have a limited selection of products, but will still carry over 40 beauty brands and a rotating assortment of products from hair care and fragrances to eyeshadow and lip gloss. Customers will be able to shop in person or use Target’s website to make purchases using curbside pickup or home delivery. Additionally, some of the existing Target employees will be trained as beauty consultants for the new Ulta shops.
“More than ever before, now is the time for innovation in retail,” Mary Dillon, chief executive of Ulta Beauty, said in a statement presented by The Washington Post. “This partnership is an amazing way to further reimagine guest experiences with a partner who shares our company values. We are thrilled to bring our beauty expertise, unparalleled assortment and digital innovation to life in a new channel.”
This partnership has also come at a great time to help deal with the ramifications of the coronavirus on the retail industry. Target did not deal with as many issues during the pandemic as other stores since they are an essential business that has almost everything a person could need. So Target was able to keep nearly all of their 1,900 stores open. According to CNBC, “Ulta, on the other hand, was hit hard by store closures. The beauty retailer’s same-store sales dropped by 26.7 [percent] in the second quarter year over year but have gradually improved. Comparable sales, which is made up of sales at stores open at least 14 months and its e-commerce sales, were down 37 [percent] in early May, but recovered slightly and were down by 10 [percent] in July when most of its 1,264 stores were reopened.”
The beauty industry has been struggling during this pandemic due to the lack of demand created as consumers are going to fewer social events, working and going to school remotely, and wearing face masks. This lack of demand may translate to makeup, but other products like skincare and hair color have been growing in sales due to the increased focus on self-care and just pure boredom while everyone has been stuck at home during quarantine. TikTok has also influenced this increase in purchasing skincare and hair products with easier access to knowledge about products and the results they have.
This partnership between Target and Ulta should be a great opportunity for both stores to grow their audience and accessibility. Target will be able to cater to more customers in need of prestigious makeup brands and Ulta will gain access to a wider audience that might not have set foot in an actual Ulta store. This decision is going to change the way we shop at Target and Ulta, making this wide range of products available all at one location.
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