The partnership between Target and Ulta Beauty appears to be faltering, largely attributed to significant theft issues impacting the cosmetics company’s products, which reportedly amounted to around $10,000 a month in losses at certain locations.
Recently, both companies revealed a “mutual agreement” to end their collaboration, which has seen Ulta’s well-known makeup sold in 610 Target stores nationwide.
While executives from both sides have commended the “synergy” created since their 2021 partnership, several current and former Target employees have taken to Reddit, alleging that rampant shoplifting is to blame for the ending of this union.
A targeted worker commented on Reddit, “The amount of theft is insane. I could be mistaken, but it’s at least $10,000 worth of stolen goods a month.” This was shared earlier this year, shedding light on the gravity of the situation.
Echoing similar sentiments, a Reddit thread accused organized thieves of making off with Ulta’s premium cosmetics from less-staffed Target locations.
Retail theft has surged in the wake of the pandemic, prompting numerous retailers—including Target—to enhance their security measures, such as locking up products.
Despite these precautions, some employees assert that they haven’t been effective. One worker noted that inventory reports showed 40% of the Ulta products received throughout the year had vanished.
“Just that small beauty section alone racks up thousands in losses,” remarked another employee on Reddit, indicating that this area was particularly targeted for theft.
Another instance involved a group of thieves leaving the store with garbage bags filled with around $8,000 in Ulta merchandise.
Neither Target nor Ulta has commented on the shoplifting claims, nor offered much insight into their decision to conclude the partnership—a move set to unfold by next August.
A note from analysts at TD Cowen suggested that one motive behind the split could be an attempt to minimize what industry insiders refer to as “shrinkage,” a term encompassing inventory loss through theft or damage, as noted by Retail Dive.
Additionally, a source from the industry hinted that Ulta might be looking to separate itself from Target’s growing negative reputation, particularly after Ulta faced backlash over its reduced offerings of pride-related products and its diversity initiatives, according to Fortune.
The partnership began to unravel in April when Ulta CEO Kecia Steelman indicated a “pause” on the mini store projects to learn from the experience.
Target’s executive vice president, Rick Gomez, expressed pride in their shared achievements with Ulta while affirming the retailer’s commitment to delivering a satisfying beauty shopping experience for consumers.
In February, Target introduced 2,000 new beauty items alongside 50 brands, even adding cosmetics to its discount section known as the Bullseye playground.
