Why Ulta Beauty is closing hundreds of store-in-stores in 2026: Is your location on the doomed list?

Ulta Beauty and Target Corporation announced on Thursday they won’t be renewing their in-store partnership, which ends a year from now in August 2026.

Until then, Ulta Beauty products will continue to be sold in Target stores and online at Target.com.

Ulta Beauty has an estimated 600 in-store, or “shop-in-shop” locations at Target, at nearly a third of Target’s 1,981 U.S. stores, according to CNBC. Fast Company has reached out to both companies for additional information about the timeline and locations of the closures.

Shares in both stocks fell on the news, with Ulta Beauty (NASDAQ: ULTA) down about 1% and Target Corporation (NYSE: TGT) down nearly 2% in early and midday trading on Thursday.

Since launching four years ago in 2021, Target’s partnership with the beauty retailer, which sells everything from cosmetics to skin and hair care products, was a way to increase foot traffic in Target’s stores, while giving Ulta a way to expand its customer base.

Target, like many big box retailers, is seeing slower growth and softer sales fueled by high prices, inflation, and changing consumer habits—which have prompted fewer Americans to shop in stores as they gravitate online. The retailer also faced consumer boycotts over its rollback of DEI policies earlier this year.

“For 35 years, Ulta Beauty has revolutionized how people experience beauty—bringing together an unmatched assortment from mass to luxury—and our partnership with Target was one of many unique ways we have brought the power of beauty to guests nationwide,” Amiee Bayer-Thomas, chief retail officer at Ulta Beauty said in a press release. “As we continue to execute our Ulta Beauty Unleashed plans, we’re confident our wide-ranging assortment, expert services and inspiring in-store experiences will reinforce our leadership in beauty and define the next chapter of our brand.”

That release said customers with Ulta Beauty rewards and Target Circle-linked accounts will continue to earn Ulta Beauty rewards on eligible Ulta Beauty at Target until August 2026.

Target and Ulta Beauty by the numbers

In its latest earnings results for the first quarter of 2025, ending on May 3, Ulta Beauty reported net sales increased 4.5% to $2.8 billion compared to $2.7 billion the year prior, primarily due to increased comparable sales and new store contribution, and partially offset by a decrease in other revenue. The company has a market capitalization of $23.77 billion.

Target, which reports second quarter earnings next week, missed first quarter revenue expectations for the period ending May 3, with revenue coming in at $23.85 billion, falling short of $24.27 billion estimates. The company reported earnings per share (EPS) of $1.30 adjusted, missing analyst estimates of $1.61. At the time, the retailer cut its full-year sales outlook, with sales down 3% compared with the same period a year ago. Target has a market capitalization of $47.14 billon.