Ulta Beauty Hits Pause on Target Shop-in-Shop Rollout Amid Strategic Refocus
Ulta Beauty will pause further expansion of its Target shop-in-shops in 2025, following the rollout of more than 600 locations since the partnership began in 2021. The post Ulta Beauty Hits Pause on Target Shop-in-Shop Rollout Amid Strategic Refocus appeared first on Global Cosmetics News.
THE WHAT? Ulta Beauty will pause further expansion of its Target shop-in-shops in 2025, following the rollout of more than 600 locations since the partnership began in 2021.
THE DETAILS Speaking at JPMorgan’s Retail Round Up Conference, new CEO Kecia Steelman said the focus in the year ahead will shift toward driving operational efficiency and value within the existing locations. The shop-in-shops — which feature dedicated Ulta Beauty spaces within Target stores selling prestige cosmetics — were once slated to reach 800 doors. That goal is now on hold. No new shop-in-shop expansion plans have been announced beyond 2025. The royalty-based model had contributed to Ulta’s “other revenue” line, but the income has not been highlighted in the past two quarters amid a dip in that category.
THE WHY? The pause comes as Ulta Beauty rethinks its growth strategy following several quarters of slowed performance in the prestige beauty space. Steelman’s broader turnaround plan, Ulta Beauty Unleashed, puts greater emphasis on e-commerce, loyalty, international expansion, and stand-alone stores — signalling a move away from relying on external retail partnerships to drive growth.
The post Ulta Beauty Hits Pause on Target Shop-in-Shop Rollout Amid Strategic Refocus appeared first on Global Cosmetics News.
