Target Corp. inked a deal with Ulta Beauty Inc. to add miniature “shop-in-shop” versions of the makeup store to its aisles beginning next year.
Ulta products will initially be available in over 100 Target locations, with a plan to add hundreds more, the retailers said in a statement. The pop-ups will take up about 1,000 square feet of space and will be located next to Target’s existing beauty section. The financial details of the partnership were not disclosed.
Ulta shares jumped as much as 7.2% Tuesday in New York, while Target climbed as much as 2.2%.
The partnership gives Ulta “another growth channel” as it faces limited opportunities to expand in the U.S., Quo Vadis Capital’s John Zolidis said in a note. It will also help offset margin pressure amid a shift to online sales, he said.