Target and Ulta Beauty announced one of the boldest retail partnerships in ages on Tuesday: The beauty store chain will open small shops inside hundreds of Target locations in the coming years—despite the fact that the two retailers compete in the category and face off at countless strip malls where they cohabitate.
Ulta, the fast-growing beauty products and services retailer, will open 1,000 square-foot shop-in-shops at 100 Target stores next year, with plans for many more. The Ulta shops will sit alongside Target’s existing beauty sections with prominent signage and be staffed by Target employees.
This is not the first time Target has turned to an outside company that is frankly better at something it wants to offer customers: A few years ago, Target got out of the pharmacy business and brought in CVS Pharmacy. Target also bought Shipt a few years ago rather than build its own fast delivery service from scratch.Fortune