Target to Open 250 More Ulta Beauty Shops in Stores This Year
More Target stores will get an Ulta Beauty shop added in 2022, reports USA Today. The retailer announced Monday that it plans to open 250-plus additional small beauty shops inside its stores this year after opening 101 locations and an online store since August 2021. Target didn't release a list of the upcoming locations, but said stores that have added the Ulta shops have seen increased traffic, awareness and loyalty.
The Ulta expansion is part of a plan to invest up to $5 billion to continue scaling its operations in 2022, according to a company press release. Target will invest in its physical stores, digital experiences, fulfillment capabilities and supply chain capacity that further differentiate its retail offering and drive continued growth.
Total Retail's Take: The partnering of two of the industry's strongest performers has, perhaps not surprisingly, proven to be a success and worth additional investment from both Target and Ulta. The COVID-era partnership was announced in November 2020, and began with the opening of 100 Ulta Beauty at Target shop-in-shops in 2021.
“With these strong results, we remain committed to operating at least 800 Ulta Beauty at Target locations over time,” Christina Hennington, Target executive vice president and chief growth officer, said in a statement. Ulta is gaining a considerable amount of footprint from this deal as well, without having to open more of its own retail locations (and, of course, without the cost associated in doing so).
Target has been making headlines with several initiatives announced within the last week. In addition to the Ulta in-store expansion, the retailer has plans to invest $300 million to increase its pay and benefits packages for employees. In addition, Target plans to begin testing curbside returns and Starbucks order pickup in the year ahead. All this comes as the retailer releases its fourth quarter and full-year 2021 earnings. With traffic up 8.1 percent, Target posted its 19th straight quarter of growth — a feat not many other businesses can report in a regular year, let alone amidst a global pandemic. Now the company is implementing several strategic initiatives to sustain that momentum for both the short term and long term.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.