How do Walmart and Target plan to compete with Sephora and Ulta?

By expanding beauty product lines, adding premium brands, and enhancing in-store shopping experiences.

What is the impact of this competition on Walmart and Target stocks?

It may pressure margins in the short term but could boost customer traffic and basket size, potentially benefiting revenues.

Walmart, Target Ramp Up Beauty Offerings to Lure Sephora, Ulta Shoppers

As beauty spending remains robust post-pandemic, Walmart and Target are expanding their beauty sections and partnerships to compete with specialty retailers like Sephora and Ulta.

June 6, 2026

2 min read

Source: TheStreet

During the COVID-19 pandemic, when many consumers cut back on spending, the beauty category remained strong. Now, Walmart (WMT) and Target (TGT) are vying to capture beauty shoppers from specialty retailers like Sephora and Ulta by enhancing their product offerings and in-store experiences.

Details

Walmart is expanding its beauty sections, including premium skincare and makeup lines, while Target is deepening partnerships with popular brands. Both aim to create a shopping experience that rivals specialty stores, targeting customers who previously preferred dedicated beauty retailers.

Context

The push comes as beauty spending continues to grow, even as other retail categories slow. U.S. beauty sales rose over 10% last year, making it an attractive market for big-box retailers seeking higher margins and customer loyalty.

What It Means for Investors

This move intensifies competition between Walmart and Target in a high-growth segment. While it may pressure short-term margins, it could boost customer traffic and basket size. Investors should monitor how these strategies impact same-store sales and market share.

Frequently Asked Questions

Because consumer spending on beauty products has remained resilient even during downturns, making it a profitable and promising market.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.