Ulta Beauty and Target said Thursday they will not renew their shop-in-shop collaboration, confirming that the “Ulta Beauty at Target” agreement will conclude when it expires in August 2026. The partnership, announced in late 2020 and introduced to stores in August 2021, placed prestige cosmetics counters in the discount chain’s aisles and added Ulta merchandise to Target.com. It now spans more than 600 locations—nearly one-third of Target’s 1,981 U.S. stores. Both companies said the in-store boutiques, online assortment and linked loyalty-rewards program will remain available until the contract ends, and pledged a smooth transition for employees and customers while they pursue separate beauty strategies. Investors reacted negatively to the news: Target shares slipped about 2% in early trading, while Ulta fell roughly 1–2%.