Walk into almost any suburban Target these days and you'll see that familiar orange glow. It’s the "Ulta at Target" shop-in-shop, a concept that felt like a fever dream for beauty lovers when it first launched. But lately, the internet has been buzzing with a specific, panicked question: Why is Ulta leaving Target? The short answer? It isn't. Honestly, the rumors of a breakup are pretty much a classic case of digital telephone where one store closure or a shifted display gets turned into a "going out of business" narrative.
In reality, the partnership is actually doing the opposite of leaving. It's digging in.
The Truth Behind the "Ulta Leaving Target" Rumors
When people ask if Ulta is leaving Target, they’re usually reacting to localized changes. You might see a specific Target location undergoing a remodel where the beauty section gets moved. Or, maybe you noticed a few brands disappearing from the shelves.
Retail is messy. It’s constant movement.
Target and Ulta Beauty signed a long-term "shop-in-shop" agreement that wasn't designed to be a short-term experiment. When they first announced this back in late 2020, the goal was hundreds of locations. They didn't just hit that goal; they blew past it. By the end of 2023, they had already surpassed 500 locations. By 2024 and into 2025, the footprint expanded even further.
So why the confusion?
Sometimes, brand contracts change. A specific prestige brand that was available at "Ulta at Target" might decide to go exclusive with Sephora, or maybe they pull back to Ulta's full-sized standalone stores to maintain a high-end feel. When a shelf goes empty, shoppers panic. They think the whole ship is sinking.
It’s not.
The Math That Keeps Them Together
Retail partnerships live and die by the data. For Target, the "Ulta effect" is a massive driver of "basket size." That’s corporate-speak for how much stuff you cram into your red cart.
If you go in for paper towels but see a Fenty Beauty gloss or a Clinique moisturizer, you're spending an extra $25 to $50. Target loves this because beauty shoppers are some of the most loyal customers in existence. They come back often.
From Ulta's perspective, this is a genius customer acquisition play. There are millions of people who shop at Target but might feel intimidated walking into a massive, 10,000-square-foot Ulta Beauty store. By putting a curated "best of" selection inside Target, Ulta introduces their loyalty program, Ultamate Rewards, to a whole new demographic.
It’s about the "halo effect."
"The partnership with Ulta Beauty is a cornerstone of our guest experience," Target executives have noted in multiple earnings calls over the last two years. They aren't talking like people who are looking for the exit door.
What Actually Changes (and Why It Looks Like Leaving)
If you see construction tape over your local Ulta section, don't assume the worst. Here is what is actually happening in the world of retail logistics that fuels the Ulta leaving Target myth:
Inventory Refreshes Retailers rotate brands constantly. If a brand isn't performing in the limited square footage of a Target, it gets the boot. It’s replaced by something trendier—think Bubble skincare or newer prestige entries. To a casual observer, an empty endcap looks like a shutdown.
The "Mini" vs. "Full" Strategy Ulta at Target is a curated experience. It’s only about 1,000 square feet. Because the space is so small, they have to be ruthless. If they cut a brand you love, it feels like the partnership is failing. In reality, they are just making room for something that sells faster.
Staffing Shifts Target employees are trained by Ulta, but they are still Target employees. Sometimes, stores struggle with specialized staffing. If there isn't a "beauty pro" on the floor that day, the section can feel neglected. That lack of "vibe" often leads to rumors that the brand is pulling out.
Is the Competition Winning?
We can't talk about this without mentioning the elephant in the room: Sephora at Kohl’s.
That partnership is the direct rival. Sephora has been aggressive, moving into hundreds of Kohl's locations to capture the suburban shopper. For a while, business analysts wondered if Target would blink. Would they decide that the beauty wars weren't worth the floor space?
Actually, competition has made the Ulta/Target bond stronger.
They’ve integrated their loyalty programs more deeply. You can now link your Target Circle account with your Ultamate Rewards account. This kind of technical integration is expensive and time-consuming. Companies do not spend millions of dollars on software bridges if they plan on breaking up six months later.
Real World Performance
Let's look at the 2024 and 2025 retail climate. Brick-and-mortar stores have had a weird few years. Inflation made people picky. However, "prestige beauty"—the fancy stuff Ulta sells—has remained remarkably "recession-proof."
People might skip a new TV, but they usually won't skip their favorite mascara.
Target’s beauty category has consistently outperformed other divisions like electronics or home goods. When a section of your store is making money while other sections are struggling, you don't remove it. You expand it.
Why Some Stores Might Actually Close
Okay, to be fair, "never" is a big word. Will some Ulta at Target locations close?
Yes.
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If a specific Target store is underperforming across the board, or if the lease is up and the building is being demolished, the Ulta section goes with it. Also, in high-theft areas, some retailers have been forced to reconsider their "open layout" concepts.
If you see an Ulta section being removed from a high-shrink (theft) store, that's a localized business decision. It is not a nationwide strategy shift.
Actionable Insights for Shoppers
Since Ulta isn't actually leaving Target, you should probably make sure you're getting the most out of the partnership. Most people leave money on the table here.
- Link Those Accounts Immediately: If you haven't linked your Target Circle and Ultamate Rewards accounts in the Target app, you're losing points. You should be earning "double" rewards on every prestige beauty purchase.
- Check for "Target-Only" Sets: Ulta often creates specific gift sets or "discovery kits" specifically for the Target footprint. These are frequently better deals than what you find in the standalone stores because they are designed for the "impulse buy" price point.
- Use the App for Inventory: Don't drive to Target assuming they have your specific shade of foundation. The "Ulta at Target" inventory is separate from the main Ulta app. Use the Target app specifically to see what's in stock at your local "shop-in-shop."
- Returns Are Easier: You can return Ulta at Target purchases to the Target guest services counter. You don't have to go to a standalone Ulta. This is a huge time-saver that people often forget.
The partnership is evolving. It’s getting bigger. It’s getting more digital.
The next time you hear someone say that Ulta is leaving Target, you can tell them the truth: they're just getting started. The orange and red bullseye is here to stay for the foreseeable future, mostly because it makes too much money for both sides to walk away.
Retail is about survival, and right now, these two are surviving much better together than they ever did apart. Keep an eye on the "New Arrivals" section instead of the exit sign. You'll likely see more prestige brands moving in, not out.