Target has spent much of the past year trying to convince shoppers that a major comeback is underway. And one of its most important categories is giving the retailer a reason to feel optimistic.
During the company’s second quarter, Target reported $26.5 billion in quarterly sales, up 5.3% from a year earlier, while comparable sales increased 3.8%.
Target also saw huge gains in the beauty category.
That win comes at an interesting moment for Target, since the company is officially entering the post-Ulta era.
Target and Ulta Beauty launched their shop-in-shop partnership in 2021, bringing prestige beauty products into hundreds of Target stores. But the companies decided last year not to renew the agreement, and the partnership ended in August 2026.
Target now has to prove it can stand on its own in the beauty category. And so far, the company seems to be succeeding.
Target is betting big on beauty
Target isn’t simply trying to replace the Ulta assortment it’s losing. Rather, it’s trying to build something of its own.
During the company’s most recent earnings call, Chief Merchandising Officer Cara Sylvester said beauty is one of several key areas in which Target is making disproportionate investments.
“We’ve got a new ambition,” Sylvester said. “We’re going to have dedicated beauty advisers. We’re incredibly excited about this next chapter for us.”
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That next chapter arrives soon.
Target plans to launch its new Target Beauty Studio concept in more than 600 stores. The spaces are designed to create a more elevated beauty experience.
The company has been preparing for the launch throughout the second quarter, including training beauty advisers and getting the new spaces ready.
The goal is not simply to put more products on shelves. It’s to make beauty a destination at Target.
The Ulta breakup may have forced Target to raise its game
Losing Ulta could have been a problem for Target. Instead, the retailer appears to be using the end of the partnership as an opportunity to rethink its entire beauty business.
Target began adding new beauty products earlier this year, and management said the response from shoppers has been sustained.
“We saw sustained growth from those businesses and sustained traffic growth,” Sylvester said.
That matters because Target’s turnaround depends heavily on getting shoppers excited about its product offerings.
Beauty is particularly well suited to that strategy, since it’s a category where shoppers are constantly looking for new products and embracing new trends.
Target is going all-in
The Beauty Studio launch shows just how serious Target is about the opportunity.
Sylvester described the initiative as an “entirely new immersive experience.”
That is a big ambition for a retailer that has had plenty of challenges getting its broader merchandise strategy right.
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Target still has work to do in categories such as home and apparel, and executives acknowledged that its transformation will take years.
But beauty is giving the company something it badly needs — evidence that its investments can actually change how customers shop.
So while the Ulta partnership may be over, it could be the beginning of a much bigger opportunity for Target.
Maurie Backman owns shares of Costco.
