Target and Ulta mutually agree not to renew partnership launched in 2021

NEW YORK (AP) — Target and Ulta Beauty are parting ways, ending a partnership launched in 2021 that created in-store shops filled with beauty products at hundreds of the discounter's stores.According to a joint release issued Thursday, the companies said they have “mutually agreed" not to renew their pact, which concludes in August 2026. Until then, the Ulta Beauty experience at Target will continue in Target stores and on Target.com, the release said. Get stock market news alerts:Ulta is currently in 600 of Target's roughly 1,980 stores, according to a Target spokesperson. “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,” said Amiee Bayer-Thomas, chief retail officer of Ulta Beauty, in a statement.Rick Gomez, executive vice president and chief commercial officer at Target, said in a statement he was committed to "offering the beauty experience consumers have come to expect from Target.”The partnership was announced in 2020 and came as the coronavirus pandemic upended shopping habits and more people tried to minimize potential exposure to the virus through one-stop shopping. COVID had dampened sales of lipstick as people wore masks, but the skincare business enjoyed stronger sales. The shops are about 1,000 square feet and carry makeup, skincare, and fragrance and operated beside existing beauty sections in Target stores. The deal was a way for both Target and Ulta to increase their customer base. “It’s a combination of two winning retailers that have great momentum in the market that can redefine the category,” Target CEO Brian Cornell told The Associated Press back in 2020.The announcement comes as Target is struggling to regain its footing with its shoppers who are pulling back on discretionary items and are shopping at other rivals that they believe to be lower price or offer better merchandise. Target is slated to report its fiscal second-quarter results on Wednesday. Target is also expected to announce a succession plan for a new CEO to replace president and CEO Brian Cornell, who took the helm in 2014. In September 2022, Target extended Cornell’s contract for three more years, but the retailer never publicly gave an official time frame. Where Should You Invest $1,000 Right Now?Before you make your next trade, you'll want to hear this.MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.They believe these five stocks are the five best companies for investors to buy now...See The Five Stocks Here