Ulta Beauty Inc. and Target Corp. said they will wind down their shop-in-shop collaboration, agreeing to conclude the partnership in August 2026. The arrangement, announced in late 2020 and rolled out the following year, placed small Ulta outposts inside Target stores to bring prestige beauty brands to the big-box chain’s aisles. Both companies described the move as mutual. The decision comes as Target continues to confront softer discretionary spending amid persistent inflation, while Ulta reassesses expansion priorities in a highly competitive beauty market. In early trading after the announcement, shares of each retailer slipped about 2%. Separately, Raymond James raised its price target on Ulta Beauty to $590 from $500, maintaining an Outperform rating and citing the company’s underlying fundamentals despite the forthcoming exit from Target locations.