Ulta Will Close More Stores As Target Partnership Ends Next Year

Between retail stores and digital sales, the cosmetic industry has faced numerous difficulties. The beauty industry itself thrives on locations that are very important to sales.

Most customers prefer to inquire in person about which makeup fits them best. However, on the other side of the spectrum, if a customer knows what to buy, showing up at the actual store can be unnecessary.

As of now, according to McKinsey’s State of Beauty, the global beauty industry is worth $450 billion and is still growing, though changing.

“For years, a seemingly insatiable appetite for Nunez and beauty, feud, robust volume, and even greater price growth, with a sector growing 7% annually from 2022 to 2024. Now, geopolitical and economic uncertainty, market saturation, and involving consumer preferences threaten that process, requiring industry leaders to develop a new growth strategy,” the data shows.

However, when it comes to detail retailers, they’re making their difference.

“The channel landscape is also influx by 2030. We expect online channels to account for nearly 1/3 of the global beauty sales (up from 26% of 2024), the highest share of any channel. Specialty retailers and monogram stores are likely to maintain their share of sales while department stores and drugstores could see their share of sales decline,” according to McKinsey.

According to Yahoo Finance, since the market changed, beauty brands have been struggling, even back since 2019, when they survived a Chapter 11 bankruptcy. However, in 2025, stores began to close.

Despite stores closing, a massive blow to the beauty industry, Ulta Beauty and Target are ending their partnership by 2026.

“Staffing needs loyalty program, synergies shrink and return on invested capital were likely key considerations,” according to TD Cowen Analysts.

In August 2025, Ulta Beauty and Target announced they would not move forward with their 2026 partnership, according to an Ulta Beauty press release. The makeup brand partnered with Target back in 2021 and opened 600 stores in Target during its peak. According to Target, it will “continue to offer a differentiated beauty assortment” after its partnership ends, while Ulta says it will focus on its core business.

Besides Ulta and Target ending their business together, other beauty brands are closing their stores selectively. According to Bloomberg Law, the 2025 closures are part of financial troubles; the 2019 bankruptcy is an example. Specific stores in Kansas City are even closing at the end of this month, according to Yahoo reports. In total, beauty brands operated around 58 locations, but due to poor sales, beauty brands have cut down stores, according to Retail Dive.

As it stands right now, only 15 stores are still in operation across 12 states.

“If you would like to visit beauty brands, we operate 15 corporate all locations in Illinois, Kansas in Missouri. We apply more than 600 specially train knowledgeable, customer service associates, and salon professionals across these locations,” the company shared on their website.

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