• by Sarah Mahoney , 2 hours ago

Target is introducing a new format to boost beauty sales, called the Target Beauty Studio.

The announcement comes 12 months after a much-hyped partnership with Ulta for shops-within-shops fell apart, and just as Target’s comeback efforts appear to be taking hold.

The Minneapolis-based company says the studios will open in early September in 600 Target stores, just weeks after the Ulta deal formally ended.

It will showcase 1,600 products from 90 prestige, emerging and global brands. Each shop will have dedicated beauty advisors in a distinct uniform, solving a snag that reportedly helped sink the five-year Ulta deal.

The shops will also offer rotating selections and loyalty offers, and host in-store events with special offers on September 24.

Allure points out that the concept’s debut may well be spoiled by another gaffe, with Target hastily yanking — and apologizing for — a Halloween costume resembling racist imagery and stereotypes.

CNN covered the brand’s apology, and The Washington Post(among others) blasted Target for the decision to include the costume in the first place: “Who in the world would have approved that costume?”

Target is nonetheless pressing ahead with the beauty launch. "When guests shop for beauty, they want to pick up their standbys while also exploring what's new and trending, and Target Beauty Studio is designed with that mix in mind," said Amanda Nusz, senior vice president of merchandising, essentials and beauty, in the announcement. It's an inspiring destination to discover what's new, now and next in beauty — and a powerful example of how our merchandising authority comes to life through an elevated guest experience."

Beauty sales have been a perennial bright spot in Target’s results, even as it stumbled in other categories.

Target’s core demographic loved the retailer’s mix of trendiness and affordability, with dupe brands — like E.L.F. — performing especially well.

That’s what made the Ulta deal, first struck in 2021, seem like a sure thing.

But as Target’s fortunes fell across the board, widespread reports of problems surfaced, including excessive shrinkage, inadequate staffing, cannibalization of Ulta’s other locations, competing loyalty programs and unclear marketing messages.

When the end of the deal was announced last year, Ulta was quick to clarify that it would have little financial impact on its results — a sure sign it had never taken off.

But for Target, it was another black eye, at a time when the company was floundering amid a DEI meltdown and ongoing boycotts led by Black and LGBTQ consumer advocates, and a rocky executive transition.

Whether the new concept can fix that is an open question, but there are signs it will not be easy.

Rival Kohl’s, which has a long-standing deal with Sephora for shops-within-shops, just reported that for the second straight quarter, sales in these beauty units have fallen.

Sephora at Kohl’s had been contributing about 10% of the department store’s topline, and now may be contributing to its declines, reports Retail Dive, which notes Kohl’s just posted its 18th straight quarter of declining comps.

Target seems certain that discovery is the remedy. Modern Retail says two-thirds of brands in the concept will be new to Target, including hair, skin, suncare, cosmetics and fragrance. Among them are leading K-beauty brands like Amuse and Purito Seoul, Mexican beauty brand Sarelly and French nailcare brand Manucurist.