Ulta Beauty Inc. and Target Corp. said they will not renew their shop-in-shop agreement when it expires in August 2026, ending a five-year collaboration that placed Ulta beauty counters inside the big-box retailer and extended Ulta’s assortment to Target.com. Both companies described the decision as mutual in a joint release issued Thursday. The venture began in 2021 and has grown to more than 600 Ulta Beauty outposts—about one-third of Target’s 1,981 U.S. stores. Customers will continue to earn and redeem linked Ulta Beauty Rewards and Target Circle benefits until the partnership winds down. Day-to-day operations in the existing locations and online will remain unchanged during the transition period, the companies said. The announcement sent both stocks lower in early trading, with Ulta down roughly 2.4 % and Target off 1.3 %. Target, which reports second-quarter earnings next week, is revamping merchandise amid slowing discretionary spending, while Ulta is concentrating on its own omnichannel growth plan. Executives Rick Gomez of Target and Amiee Bayer-Thomas of Ulta each highlighted the success of the collaboration but said their firms are now prioritizing core retail strategies.