Ulta Beauty CEO Mary Dillon told CNBC on 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 skin care stores in select countries target Business from next year. With a total of 100 million members registered for the company’s respective loyalty programs, both see the opportunity to reach new customers.
“This is the exciting opportunity,” said Dillon. “It gives millions of new guests the opportunity to meet and learn about brands, and we know that guests love it.”
Under the deal, Ulta will set up approximately 1,000 square feet of brick-and-mortar stores and market a curated selection of beauty brands, including makeup, fragrance and hair care products, among others. Target plans to have Ulta stores in 100 locations and to reserve space on its website.
Ultamate Rewards, Ulta’s loyalty program, has more than 33 million active users. Target announced that it had booked a long-term contract with the cosmetics supplier to attract customers and increase sales.
Through the deal, Ulta will train Target employees to be beauty consultants. In addition, the company will use the department chain services on the same day, e.g. B. Roadside delivery and collection.
“Think of this as two retail leaders coming together to delight guests and find great ways for brands to grow,” said Dillon.
“Think of an Ulta Beauty in Target, the look and feel of Ulta Beauty, with an increased prestige image where we have a curated selection of brands that are emerging and established prestige brands in categories like makeup, skin care, hair care and fragrance are . “
Investors apparently value the partnership very much. Ulta stock closed more than 7% on Tuesday after the deal was announced, but it gave back some of those gains as it fell nearly 4% the day after.
Shares ended the session at $ 255.42, up nearly 1% year over year.
The target stock also hit the news on Tuesday and extended its gains on Wednesday. It rose 3% on the two trading days and stood at $ 159.69.