February 21, 2025
Image Courtesy of Target
Should Target Be Doubling Down on Beauty?
Target is introducing more than 2,000 beauty products, including nearly 50 new brands, in a significant ramp-up of its beauty assortments.
The new offerings range from skin care to makeup, fragrance, and hair care, including viral brands like Bubble, Clean Skin Club, and DAISE making their debut on the store’s shelves as well as expanded assortments from brands like fine’ry, ColourPop, Being Frenshe, and Olive & June.
Affordability is being emphasized, with 90% of new arrivals priced under $20.
Target also offers “even more beauty brands” through its partnership with Ulta Beauty formed in 2020, which has led to the opening of over 500 Ulta Beauty at Target in-store shops as well as an online component.
“We know consumers love shopping beauty at Target because it’s Tarzhay at its best: the combination of amazing products and prices you can’t find anywhere else,” said Amanda Nusz, Target’s SVP of essentials and beauty, in a statement.
The expansion appears to align with Target’s fashion-forward reputation — cemented by its numerous designer collaborations over the years — along with the fact that beauty strongly outperformed other categories at Target over the last year. Same-store sales in beauty grew 6% in the third quarter, 9% in the second quarter, and low-single digits in the first quarter. Target’s overall comps were down 0.5% in the nine months.
Target is also outperforming the mass channel, where beauty sales grew by 3% in 2024, according to Circana.
“Beauty at Target has been a booming business for us,” Rick Gomez, Target’s EVP and chief commercial officer, said in an interview with WWD last October. “We have had growth every year for the last five years, and that has made our beauty business actually double in size since 2019.”
He credits Ulta with helping Target extend its price points and increase available offerings in the category, but also the chain’s commitment to newness. Successful launches include L’Oréal’s Colorsonic (a Target exclusive) as well as three celebrity hair care ranges: Blake Lively’s Blake Brown, Tabitha Brown’s Donna’s Recipe, and Jennifer Aniston’s LolaVie — the last available through the Ulta partnership.
“We’re not a catalog and we’re very thoughtful about which brands we carry,” Gomez said. “We look to prestige brands, emerging brands, digitally native brands and, of course our owned brand. That’s the magic mix.”
Target’s largest competitor, Walmart, is also investing in beauty, such as by forming a shop-in-shop partnership with Space NK to bring prestige beauty to its aisles, including a co-incubated brand called BeautySpace. Similar to Target, Walmart is focusing on bringing indie and emerging beauty brands into the mix alongside legacy players, such as Madison Reed, Current State, and, recently, the inclusive hair care brand Being, which was founded by MONDAY Haircare co-founder Jaimee Lupton.
Amazon scored a coup in beauty when L’Oréal began selling Lancôme on the platform in late 2023, followed by Estée Lauder’s Clinique arriving in May 2024, with several other L’Oréal and Lauder brands since opening on Amazon. Morgan Stanley has predicted that Amazon will overtake Walmart as the biggest U.S. beauty retailer in 2025.
Also seeking growth in beauty within the mass channel is Dollar General, which reached an agreement last November to start distributing e.l.f. Beauty, the popular Gen Z brand. The store closings and challenges facing major drug store chains CVS and Walgreens may nonetheless open up opportunities to gain market share in beauty within the mass channel.
BrainTrust
Lucille DeHart
Principal, MKT Marketing Services/Columbus Consulting
Cathy Hotka
Principal, Cathy Hotka & Associates
Frank Margolis
Executive Director, Growth Marketing & Business Development, Toshiba Global Commerce Solutions
Recent Discussions
Discussion Questions
Does it make sense for Target to further position itself around the beauty category?
Is Target best positioned among traditional mass chains to capture share within beauty?
Poll
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Despite a recent slowdown in growth, beauty remains one of the more robust categories in retail. It is also one of the few departments which continues to drive growth for Target. While Target has expanded its market share in beauty over recent years, it has more headroom to increase the share of wallet from existing shoppers. Target also has to play defense against Walmart and Amazon, both of which are also doubling down on beauty. As such, the strategy makes sense. However, this alone will not turn around Target’s fortunes: it needs to remedy other weaknesses and have a much clearer strategy in the all-important grocery arena.
Doubling down on beauty and wellness is a winner. And don’t forget the growing number of men who want to pay attention to their appearance.
I remember trips to department store cosmetic counters, and how those trips could either be really fun or intimidating as hell, depending on how much money you had to spend, and the kind of sales person you encountered.
Today, we have Target, the perfect place to go for beauty needs. The selection is wide, lighting is good, and displays are both attractive and easy to shop, and there are sales people available to help you if you need it.
People obviously love it, so it makes sense for Target to take advantage of that opportunity and expand.
Correct, You already have a captive audience, It only makes sense to expand beauty. My only thing is that they really need to ensure there are appropriate sales associates to man the section. Not right to have the frozen food sales associate(or no one) to help a customer needing assistance in beauty. They need to take pride in this expansion.
If there is just one chain that ought to double down on Beauty it would be Target. Given the “target” market this retailer, and it’s already well-established reputation for Beauty, the opportunity for growth and expansion is prime. Target represents serious competition against traditional “beauty” stores, while offering certain broader advantages to each consumer.
Target is right to pursue growth in beauty, but it feels like an act of desperation. They’ve lost share in countless other categories recently, and this attempt at growth will be a race against strong competition that it has been unable to differentiate itself from in the past.
Very good perspective and insight.
It would be ill-advised for Target to take its foot off the pedal related to beauty. Granted there has been a recent category slowdown and competition is fierce, but Target can stake claim to portions of the category unlike other retailers.
Imagine if the chain reinvented the experience within their stores to embrace social media more effectively? In other words, with a dose of true innovation and creativity, Target could produce an influencer destination. Now, that would help them stand out in the crowd.
It is easy to chase the growth categories, but this can be cyclical and Target should be cautious. They should define their brand for long-term scaling and not just go after shorter-term wins. The appeal of target had been their fashion and even home decor. If they become the cosmetics destination (which would not differentiate them from the brands they carry), they could lose their DNA.
Target has done a great job with beauty. They understand who the influencers are, they are on top of trends, and they know how to deliver value. This is one category where they already enjoy substantial brand awareness and I expect this will be a win for them.
Target’s continued investment in beauty is a strategic play that aligns well with the growing influence of premium and indie brands in mass retail. By expanding its Ulta partnership and refining its private-label offerings, Target is reinforcing its positioning as a go-to destination for beauty enthusiasts who seek both affordability and innovation. However, the challenge will be differentiation. With competitors like Walmart scaling their own beauty sections and specialty retailers maintaining strong brand loyalty, Target must focus on creating a unique in-store and digital experience. Personalization, AI-driven recommendations, and community-driven engagement (such as live shopping and influencer partnerships) could be key levers to deepen customer connection.
Target should continue to grow the beauty business. It’s a relatively high-margin category and it benefits from repeat purchases. It’s also compatible with Target’s ongoing effort to appeal to women shoppers through the rest of its merchandising. While the company is hitting some bumps in the road (not for the first time), adding more beauty positions it well for the next turnaround.
yes, with the decline of department store makeup counters, Target would be the logical successor. Obviously they have to compete with the likes of Sephora but this is category that target can expand on as part of Health and Beauty Care, versus Sephora’s approach of high touch makeup experience.
Absolutely – Target should keep doubling down on beauty. Even with slower growth in recent months, it’s still outperforming other categories. Their mix of trendy, affordable, and exclusive brands keep them competitive, and with Walmart and Amazon making big moves in beauty, now isn’t the time to pull back.
It’s one of the categories that’s actually growing for them, so why wouldn’t they expand it? Consumers already see Target as a place for trendy, affordable finds, and beauty fits right into that.
Plus, their Ulta partnership gives them an edge over Walmart. But is Target best positioned to dominate beauty? Not necessarily. Amazon is creeping in, and Walmart is catching up.
Target has to keep pushing to keep the momentum. Expanding is a smart move but staying ahead will be a challenge.
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Despite a recent slowdown in growth, beauty remains one of the more robust categories in retail. It is also one of the few departments which continues to drive growth for Target. While Target has expanded its market share in beauty over recent years, it has more headroom to increase the share of wallet from existing shoppers. Target also has to play defense against Walmart and Amazon, both of which are also doubling down on beauty. As such, the strategy makes sense. However, this alone will not turn around Target’s fortunes: it needs to remedy other weaknesses and have a much clearer strategy in the all-important grocery arena.
Doubling down on beauty and wellness is a winner. And don’t forget the growing number of men who want to pay attention to their appearance.
I remember trips to department store cosmetic counters, and how those trips could either be really fun or intimidating as hell, depending on how much money you had to spend, and the kind of sales person you encountered.
Today, we have Target, the perfect place to go for beauty needs. The selection is wide, lighting is good, and displays are both attractive and easy to shop, and there are sales people available to help you if you need it.
People obviously love it, so it makes sense for Target to take advantage of that opportunity and expand.
Correct, You already have a captive audience, It only makes sense to expand beauty. My only thing is that they really need to ensure there are appropriate sales associates to man the section. Not right to have the frozen food sales associate(or no one) to help a customer needing assistance in beauty. They need to take pride in this expansion.
If there is just one chain that ought to double down on Beauty it would be Target. Given the “target” market this retailer, and it’s already well-established reputation for Beauty, the opportunity for growth and expansion is prime. Target represents serious competition against traditional “beauty” stores, while offering certain broader advantages to each consumer.
Target is right to pursue growth in beauty, but it feels like an act of desperation. They’ve lost share in countless other categories recently, and this attempt at growth will be a race against strong competition that it has been unable to differentiate itself from in the past.
Very good perspective and insight.
It would be ill-advised for Target to take its foot off the pedal related to beauty. Granted there has been a recent category slowdown and competition is fierce, but Target can stake claim to portions of the category unlike other retailers.
Imagine if the chain reinvented the experience within their stores to embrace social media more effectively? In other words, with a dose of true innovation and creativity, Target could produce an influencer destination. Now, that would help them stand out in the crowd.
It is easy to chase the growth categories, but this can be cyclical and Target should be cautious. They should define their brand for long-term scaling and not just go after shorter-term wins. The appeal of target had been their fashion and even home decor. If they become the cosmetics destination (which would not differentiate them from the brands they carry), they could lose their DNA.
Target has done a great job with beauty. They understand who the influencers are, they are on top of trends, and they know how to deliver value. This is one category where they already enjoy substantial brand awareness and I expect this will be a win for them.
Target’s continued investment in beauty is a strategic play that aligns well with the growing influence of premium and indie brands in mass retail. By expanding its Ulta partnership and refining its private-label offerings, Target is reinforcing its positioning as a go-to destination for beauty enthusiasts who seek both affordability and innovation. However, the challenge will be differentiation. With competitors like Walmart scaling their own beauty sections and specialty retailers maintaining strong brand loyalty, Target must focus on creating a unique in-store and digital experience. Personalization, AI-driven recommendations, and community-driven engagement (such as live shopping and influencer partnerships) could be key levers to deepen customer connection.
Target should continue to grow the beauty business. It’s a relatively high-margin category and it benefits from repeat purchases. It’s also compatible with Target’s ongoing effort to appeal to women shoppers through the rest of its merchandising. While the company is hitting some bumps in the road (not for the first time), adding more beauty positions it well for the next turnaround.
yes, with the decline of department store makeup counters, Target would be the logical successor. Obviously they have to compete with the likes of Sephora but this is category that target can expand on as part of Health and Beauty Care, versus Sephora’s approach of high touch makeup experience.
Absolutely – Target should keep doubling down on beauty. Even with slower growth in recent months, it’s still outperforming other categories. Their mix of trendy, affordable, and exclusive brands keep them competitive, and with Walmart and Amazon making big moves in beauty, now isn’t the time to pull back.
It’s one of the categories that’s actually growing for them, so why wouldn’t they expand it? Consumers already see Target as a place for trendy, affordable finds, and beauty fits right into that.
Plus, their Ulta partnership gives them an edge over Walmart. But is Target best positioned to dominate beauty? Not necessarily. Amazon is creeping in, and Walmart is catching up.
Target has to keep pushing to keep the momentum. Expanding is a smart move but staying ahead will be a challenge.