Target and Ulta Call It Quits (The Divorce Was Only a Matter of Time)

“She’s a man-eater…” - Target, probably

Ulta and Target just announced they’re ending their four-year fling in August 2026, and honestly? No one’s shocked. What started as a pandemic-era situationship… a.k.a, Ulta sneaking its $40 concealers into Target’s discount aisles like prestige beauty was slumming it… was always going to feel temporary. Now the two companies are publicly filing for separation, citing “mutual agreement,” which pretty much translates to: we both think the other is dragging us down.

(Source: Giphy) 

In short, the partnership, launched back in 2021, gave Target shoppers the illusion of “trading up” while letting Ulta infiltrate suburban carts full of bulk Goldfish and Tide Pods. Target carved out little 1,000-square-foot beauty cubicles inside stores, a miniature Versailles for mascara, and by this spring Ulta had 600 of them. It was supposed to be a perfect marriage. Instead, it turned into a lukewarm brand courtship where one side boasted its prestige logos and the other quietly bled out in softlines sales. 

(Source: Wall Street Journal) 

Whereas, now, the breakup arrives at an awkward moment for Target. After 10 straight quarters of flat or negative growth, the retailer’s in the middle of a mild identity crisis. Its beauty sales were up 5% last year (the only part of the business actually glowing) while the rest of the store was rotting like an abandoned seasonal aisle in February. Even Target’s own employees don’t believe in the turnaround, according to a June survey where half said leadership wasn’t making the changes needed to stay competitive. Heck, you know morale’s bad when the people in the red shirts are basically yelling, “we’re cooked” LOL. 

Ulta, meanwhile, has been squinting at this whole thing with an “eh” face. . CEO Kecia Steelman admitted back in April that they’d paused new Target expansions while “looking closely at efficiency.” Translation: the lipstick gondolas weren’t pulling their weight. For Ulta, pandemic desperation is over. Store traffic’s back, beauty’s booming again, and being handcuffed to Target’s declining mall-in-drag vibe isn’t the win it once was.

(Source: Giphy) 

Which is why, for investors, the split means one thing: Ulta is reclaiming its premium identity, while Target loses the only aisle that made middle-class women linger. That’s brutal, because beauty has quietly become retail’s last reliable drug. Even in inflationary hell, consumers will still splurge on a concealer stick that hides the bags under their eyes from checking grocery receipts. Strip that from Target’s shelves, and you’re left with the same declining basket of cheap throw pillows and woke clearance swimsuits. Additionally, the timing is a poor chefs kiss for Target as well. If you recall, . Target’s on the hunt for a new CEO as Brian Cornell, 66, preps his exit after a decade. Whoever inherits the corner office now has to sell Wall Street on a “future vision” without Ulta as a growth crutch. Not exactly the legacy handoff you want when activist investors are circling like vultures.

(Source: Giphy) 

So, in true breakup fashion, expect Ulta to post filtered selfies of its standalone stores while Target spirals into vague inspirational quotes about “focusing on the customer.” Investors aren’t dumb…they know who’s leaving this split looking better. Meaning once again, Target is the loser here. Which is no bueno going into earnings week. Of course, the company might have something up it’s sleeve to offset the loss here, but it’s not likely. For now, keep your eyes on both stocks and place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.