Ulta & Target
A beauty collaboration between stores Ulta beauty and Target will create new makeup and skincare shops within Target stores. Each mini shop will be about 1,000 sq. ft and Target staff will be trained by Ulta on new products housed in the store. Ulta CEO Mary Dillon made a statement noting that the two companies are using this unprecedented time to lead the charge with innovation. With this new deal both companies gain larger audiences and the opportunity to gain more visibility by consumers who may only shop at one store but not the other.
The collaboration will be present not just in-store but online as well to make sure customers are getting a full view on the latest. Over the course of the pandemic Ulta has faced hardship after having to temporarily close over 1000 stores due to the global health crisis and the downward spiral of beauty products being brought by consumers due to the quarantine. While Target’s position in the market is more fixed, balancing the two companies. The hope is with this collaboration Ulta will recover and stabilize sales lost during this time and ultimately build momentum around the beauty industry. This model was used similarly by JcPenny & Sephora back in 2009, but there wasn’t much progression in the partnership because JcPenny soon fell into financial ruin. Hopefully, Target & Ulta will have better success in their endeavor. These two powerhouses are known for housing premium skin care and beauty products have come together to shape the beauty industry in a big away.