Target Corporation ( TGT Quick Quote TGT - Free Report) continues to build offerings through prudent partnerships, especially with popular and high-profile brands. The retail giant’s long-awaited strategic accord with Ulta Beauty Inc. ( ULTA Quick Quote ULTA - Free Report) is set to materialize this August. The strategic agreement between the two companies was first disclosed on Nov 11, 2020. Putting the same into effect, Ulta Beauty shops will be opened inside Target’s stores. This "shop-in-shop" concept will be put in place across more than a 100 Target stores and online, featuring over 50 specially curated prestige beauty brands. The Ulta Beauty at Target concept is expected to reach nearly 800 Target stores over time. Let’s take a closer look at this much-anticipated collaboration. Partnership with Ulta Beauty Looks Prudent
The pandemic has altered consumer’s shopping habits, directing traffic predominantly toward large one-stop retail stores and off-mall locations like that of Target. Through this strategic alliance, Ulta Beauty can leverage Target’s widespread market presence, strong customer base, strategic locations as well as omnichannel capabilities. The timing of this strategic partnership also looks apt, as consumers are now gradually returning to a normal lifestyle due to easing of pandemic restrictions and are increasingly spending on beauty products.
As a result of the tie-up, Ulta Beauty’s emerging and prestige beauty brands will be accessible to millions of customers shopping at Target. Ulta Beauty’s products will be featured at more than a 100 Target stores next month onwards along with plans to scale higher in time. The first 100 locations will be opened across 21 states including Arizona, California, Delaware, Florida, Georgia, Massachusetts, North Carolina, New Jersey, New York, Texas, Virginia and more. Target will dedicate nearly 1000 square feet of its retail space for Ulta Beauty shops, making them prominently placed next to its existing beauty sections. Image Source: Zacks Investment Research
The Ulta Beauty at Target includes well-known brands such as The Ordinary, Too Faced, Clinique, Ariana Grande, MAC, Smashbox, Urban Decay and many more. To make this shop-in-shop concept a success, Ulta Beauty’s trained team members will serve customers and provide expertise on prestige beauty collections.
Consumers will also be able to buy Ulta Beauty products on Target.com and from the Target app. In this respect, qualifying online orders will be provided with free shipping services. Online shoppers will be able to avail Target’s contactless Drive Up and Order Pickup as well as same-day delivery with Shipt. Shoppers can also benefit from rewards from both Target Circle and Ultamate Rewards. Management highlighted that Target’s online platform will reflect the elevated appeal of the Ulta Beauty brand, which transcends to an immersive and engaging experience for exploring beauty products. Wrapping Up
Target’s partnership with Ulta Beauty reflects its continued efforts to elevate consumers shopping experience and evolve as a stronger multi-category business. The retail giant has also been successful at boosting offerings by building strategic relations with companies like
Apple Inc. ( AAPL Quick Quote AAPL - Free Report) and Levi Strauss & Co. ( LEVI Quick Quote LEVI - Free Report) among others. Target’s well-chalked assortments, refurbished stores and growing digital capacity steered by an effective workforce are likely to keep it in good shape in the forthcoming periods Markedly, this Zacks Rank #2 (Buy) stock has gained 24.3% in the past three months compared with the industry’s 6.4% growth. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here