10 November 2020
The Weekly
United States

The retailers revealed they have created a strategic partnership to open 100 Ulta Beauty shops-in-shop in Target and on target.com in the second half of 2021. Called Ulta Beauty at Target, the concept will feature established and emerging prestige brands in the makeup, skin-care, hair-care and fragrance categories. The in-store shops will measure about 1,000ft2 (92.9m2) and be located next to Target’s beauty departments. According to the most recent data from The NPD Group, third-quarter prestige beauty sales fell 17% to US$3.7bn. Although the decline was smaller than the quarter before, it still points to troubled times: Color cosmetics, the largest category in the market, fell 31% to US$1.4bn in sales and skin care fell 11% despite being one of the largest-selling categories of the quarter. Ulta has felt that pinch, too. For the quarter ended Aug. 1, net sales fell 26.3% to US$1.2bn, down from US$1.7bn the year prior. Target has fared better, though. In August, it reported one of its strongest quarters ever, with comp-store sales increasing 24.3% and profits surging 81% year-over year.

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