Target has been trying to cover up years of uneven performance, much like a rushed makeup routine that conceals flaws without fully addressing what lies beneath.

Sales declines, shrinking foot traffic, and lost market share to competitors have weighed on the retailer, compounded by consumer backlash over a series of controversial business decisions.

Those pressures intensified after Target revealed that its five-year partnership with Ulta Beauty will end in August 2026. With that exit approaching, the company is moving with what it calls a renowned sense of “urgency” to fill the beauty gap and reinforce its position as a one-stop shopping destination.

Target recently unveiled a multi-year strategy aimed at returning to profitable growth and generating more than $15 billion in additional sales by 2030. The plan centers on prioritizing product “newness,” expanding assortment based on customer needs, delivering value, and enhancing the shopping experiences across stores and digital channels.

“Target will continue to curate a differentiated beauty assortment and new experience for its tens of millions of weekly shoppers, featuring a compelling lineup of essentials and unexpected finds, engaging product trial events, and a commitment to affordable prices,” it said in a press release.

Now, the retailer is beginning to put that promise into action.

Target expands its beauty assortment

Starting in February, Target (TGT) will introduce nearly 3,000 new beauty products and more than 60 new brands, with over 90% of items priced under $20. The expanded assortment spans skin care, makeup, and hair care and includes a mix of popular, prestige, and Target-exclusive offerings.

The launch marks the retailer’s largest-ever spring beauty expansion to date, available both in stores nationwide and online. Store refreshes and in-store beauty events, designed to encourage discovery and engagement, will support the strategy.

“Beauty is incredibly important and deeply personal to our guests, so our team has worked with beauty powerhouses and small, innovative, emerging brands alike to bring thousands of new products to the mix,” said Target Senior VP of Merchandising, Essentials and Beauty Amanda Nusz in a press release.

“We ended up with a spring beauty lineup that reflects what guests are looking for right now — exciting new discoveries, Target‑only exclusives, and prices that feel good. And we’ve freshened up the in‑store experience, too, so finding a new favorite feels easy and enjoyable.”

Refreshed Target stores

  • Clearer layouts: Designed to spotlight new and trending products
  • Updated displays: Aimed at inspiring exploration and interaction
  • Increased visibility for Target exclusives: Help guests shop bestsellers and new products with confidence
  • Refreshed hair care aisle: The category’s biggest transformation in years, organized around hair textures, routines, and specific needs

Customers can shop the new beauty assortment in stores, online, or through the Target app, with fulfillment options including Same Day Delivery, Drive Up, and Order Pickup.

Details on participating stores and beauty activations are available on Target’s website under the Events tab.

Target expands its 2026 spring beauty assortment.

Target’s leadership changes and strategic reset

Shutterstock As Michael Fiddelke steps into the CEO role, he aims to address Target’s recent challenges by delivering stylish, affordable products, enhanced technology, and a more consistent guest experience, all in an effort to return to the company’s roots.

To achieve this goal, Target’s team has traveled globally for inspiration and is using AI-powered tools, including Target Trend Brain, to identify emerging trends and help design new merchandise, according to a CNBC interview with Fiddelke.

The company tested elements of this approach during the holiday season, which typically accounts for roughly one-third of its annual sales. In the fourth quarter, Target introduced 20,000 new items, double the number offered the previous year, according to a press release.

  • Target breaks silence on ICE raids
  • Walmart borrows a strategy Target has used for decades
  • Sephora partners with global beauty giant

More Retail Business News: Despite these initiatives, Target expects full-year 2025 sales to decline in the low single digits, according to its latest earnings report.

In the third quarter of 2025, net sales fell 1.5% year over year, while comparable sales dropped 2.7%, driven by lower traffic and smaller average transaction size.

“Our business has not been performing up to its potential over the last few years, and I am singularly focused on supporting Michael and the entire leadership team as they make changes to the way we work, enhancing our merchandising authority, our retail experience, and investing in technology to accelerate our business,” said Former Target CEO Brian Cornell in the company’s third quarter of 2025 earnings call.

“The team is working quickly to get the company back to profitable growth. And while we’re not there yet, I’m confident we’re on the right path.”

However, there were some bright spots. Target’s Beauty, Food & Beverage, and Hardlines categories all posted growth, helping explain why the retailer is concentrating its expansion efforts in those areas. 

The growing and evolving beauty market

The U.S. beauty and personal care industry was valued at approximately $102.73 billion in 2024 and is expected to grow at a 7.1% annual rate through 2030, according to Grand View Research.

Consumer preferences are also shifting. Only 14% of U.S. beauty shoppers believe higher prices indicate a better-quality product, according to a 2025 Circana study. While the overall beauty market grew 2%, sales at mass merchants increased 4%.

“The beauty industry’s latest results are indicative of a consumer who is focused on efficacy and elevated value,” said Circana Global Beauty Industry Advisor Larissa Jensen.

“The mass and prestige markets are converging, with premium-priced brands in mass retail and value-priced prestige brands outperforming their counterparts. As the industry faces tariff uncertainties and shifting consumer sentiment, adaptability and strategic agility are essential for success in 2025.”

McKinsey & Company analysts echo that view, noting that inflation and increased access to information have pushed shoppers to pay closer attention to whether products deliver on their promises.

“Consumers are selectively splurging across not only consumer discretionary categories but also beauty subcategories,” said McKinsey & Company analysts. “This suggests that consumers ascribe value to beauty products differently depending on the product.”

What analysts say about Target’s outlook

While a full turnaround may take time, some industry experts see early signs of stabilization.

“We are seeing the early stages of recovery, but it’s going to be a long 12-month haul before we see a full bounce back of the ‘Tarzhay’ we all know and love,” said RepTrak Chief Reputation and Strategy Officer Stephen Hahn-Griffiths to Forbes. “It’s just going to take some time to recover from those recent misdemeanors.”

Others believe Target’s renewed focus on design and trends could help reverse its sales slump.

“By reimagining design as a strategic approach to address a wide range of consumer and stakeholder needs, Target offers executives a powerful model for transforming apparent dilemmas into the catalysts for innovation,” said Yale Program on Stakeholder Innovation and Management Practice Leader Jon Iwata.

Rezolve AI Chief Growth Officer Roland Gossage, a retail veteran with more than 20 years of experience, cautions that novelty alone won’t be enough and that strategies must be driven by strong fundamentals.

“Target will need to go beyond the novelty of these in-store experiences and ensure that at the end of the day, they’re delivering on these key factors of a good retail experience first,” said Gossage to The Street. “That extends to online and mobile shopping as well.”

Related: Amazon CEO warns shoppers of major changes ahead