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Ulta Beauty CEO: Target cosmetics shops deal provides ‘great paths for brand growth’

Ulta Beauty CEO Mary Dillon told CNBC Wednesday that the cosmetics company hopes to leverage its loyalty plan through its partnership with Target.

On Tuesday, the two unveiled a new deal to add skincare shops in select Target stores starting next year. With a combined 100 million members registered to the companies’ respective loyalty programs, both see an opportunity to reach new customers.

“That’s the exciting opportunity,” Dillon said. “It gives millions of new guests an opportunity to experience and learn about brands and we know that guests are excited about this.”

Through the deal, Ulta will set up stationary shops of about 1,000 square feet and market a curated selection of beauty brands, including makeup, fragrance and hair care products, among other items. Target plans to carry Ulta stores at 100 locations and dedicate space on its website.

Ultamate Rewards, Ulta’s loyalty program, has more than 33 million active users. As for Target, the company said it booked what it described as a long-term deal with the cosmetics supplier to attract customers and boost sales. Read from source….