Wholesale marketers exist in all forms and stores worldwide. Even among all these, some remain overshadowed by the success and presence of other well-established ones in the competition. As such, to make a name for oneself, these retailers must eliminate others in the field. The most straightforward plus effective way of doing so is to partner up with some other noteworthy company, to rack in customers on an unprecedented level.
This endeavour is precisely what notable retail store Target did by entering into a partnership with Ulta Beauty. This affiliation allows for the latter to open up sales under the retailer’s roof. Accordingly, there stands prevalent news that we can hope to see over a hundred of these shops at Target stores soon.
Concerning: Ulta Beauty
Ulta Beauty stands a beauty product-related store chain of American origin. The company, previously termed Ulta Salon, Cosmetics & Fragrance Inc., deals primarily in cosmetics plus skincare varieties. Additionally, it carries bath products, fragrances, hair care products for both men and women. Furthermore, each of the franchise’s stores remains furnished with a salon. Ulta owns more than 1,100 stores over 50 states.
Target stands an American wholesale merchandising business. Being the eighth-largest retail outlet in the U.S., the firm remains a segment of the S&P Index. The company established its reputation in the sector as an eccentric contender. Despite suffering immense losses following its large-scale security breach that leaked all data on customers’ credit cards, the establishment has managed to rise back. Its revitalization is a credit to its expansion into metropolitan markets. Currently, the chain owns over 1,800 stores in the country.
Target plus Ulta Beauty consented on a deal on November 10, 2020, that would endorse the latter with the clearance of launching cosmetic shops inside Target stores. They sanction the company to open many such shops over more than a hundred stores in the U.S. alone.
Reportedly, each such shop will possess around 1,000 square feet of the area while having well-trained employees commissioned in it to retail in above 40 beauty branded products. The list will also consist of an alternating product assortment. Shop-owners have provided customers with the preference of either shopping in-person or utilizing Target’s same-day amenities, namely home delivery or curbside pickup.
Influence of the Collaboration
Following the partnership’s announcement, Ulta’s shares witnessed a surprising 8% rise in premarket trading. Similarly, Target’s saw a 1% elevation, with beauty sales going up by 20%. The deal would allow the retailer to gain a steady augmentation in sales. At the same time, those of the beauty chain’s will obtain promotion through the store’s shelves plus website. This marketing strategy may seem trivial to many. Nonetheless, it means plenty for Ulta who suffered all stores’ closure during this pandemic. Nevertheless, both companies will undoubtedly procure a superior number of customers in the days to come.
Both the companies’ CEO Mary Dillon plus Brian Cornell feel that this deal would allow for their business’s perpetual growth. They view this deal to remain as a long-term partnership, leading to higher sales and a more significant number of customers.
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