You may add a new item to your Target shopping list the next time you go shopping for milk, cereal, toilet paper, and shampoo: cosmetics brands that weren’t previously accessible there.
That’s because, starting in August, Ulta Beauty small shops will debut in more than 100 Target stores throughout the country and online, bringing more than 50 luxury skincare and cosmetics brands like Clinique, MAC Cosmetics, and Smashbox into the chain for the first time.
Target said in November that it will collaborate on the stores with Ulta. It said on Wednesday that the 1,000-square-foot Ulta Beauty shop-within-a-shop will be rolled out to 800 sites.
Target shops will be located in the following cities in the Los Angeles area:
Costa Mesa (August)Los Angeles – 3535 S La Cienega Blvd (August)Burbank (August)Eagle Rock (August)San Pedro (August)Garden Grove Harbor (August)Manhattan Beach (August)North Hollywood (August)Diamond Bar (October)Hawthorne (October)
Given that cosmetics is making a comeback as more people get immunised and the pace of social contacts increases up, it’s a good moment for Target to boost its beauty products.
Target has been expanding its cosmetics business in recent years by expanding its aisles with newer, more inexpensive products.
“However, many customers still do not see Target as a beauty expert, and as a result, it has missed out on growth in the higher end of the market,” said Neil Saunders, retail analyst and managing director of GlobalData Retail.
“The relationship with Ulta should help Target enhance its beauty pitch in order to capture a larger portion of consumer pocketbook.”
Ulta, which sells a mix of drugstore beauty and high-end brands that aren’t typically found in big box stores, is expected to benefit from the deal by reaching a mix of younger Gen-Z shoppers, some of whom are budget shoppers and others who are willing to pay a premium for products with higher-quality ingredients.
The collaboration also has potential drawbacks, particularly if the new concept doesn’t appeal to Target’s discount customers.
“It might be difficult to persuade customers to upgrade to premium cosmetic products, especially when they are already spending a lot on their vacations.”
The Ulta small stores will be manned by Target employees who have been educated by Ulta in high-end cosmetic and skincare goods.
Ulta’s competitor Sephora is collaborating with Kohl’s to offer something similar. It plans to establish hundreds of Sephora small stores inside Kohl’s starting this autumn in an effort to attract more customers.