The news: The Ulta Beauty at Target partnership, which put more than 600 Ulta mini-stores inside Target locations, will end in August 2026 when the current agreement expires.

The experience will continue in Target stores and online in the interim, and customers with linked rewards accounts will accrue points on eligible purchases until next year.

The companies said they mutually agreed not to renew the deal, which launched in 2021.

Strategy shift: Ulta Beauty CEO Kecia Steelman said at an April conference that Ulta was pausing the shop-in-shop expansion, signaling the partnership may be up in the air.

Though the mini-stores in Target have boosted Ulta’s visibility, the beauty retailer is focused on launching an online marketplace and pursuing international expansion under Steelman, who was president and COO before becoming CEO in January.

Under pressure: Target, meanwhile, faces significant business challenges.