By Christiana Sciaudone
Investing.com -- Ulta Beauty (NASDAQ:ULTA) jumped 6% after saying it signed a deal with Target (NYSE:TGT) to create a shop within a shop in select locations next year.
Ulta Beauty shares are trading at their highest since before the pandemic crushed markets in March. Target is up about 2%, after rallying more than 20% since the start of the year.
Ulta Beauty at Target will debut at more than 100 stores in 2021, with plans to scale to hundreds more over time, the companies said in a joint statement. The planned locations will complement Ulta Beauty's current store footprint. With approximately 1,000 square feet of retail space, Ulta Beauty at Target will be located next to the existing beauty section.
The retailers have more than 100 million active loyalty program members across Target Circle and Ultamate Rewards. Ulta Beauty claims strong brand awareness and "is a top destination for discovery and services, connecting meaningfully with teens and the growing, influential Latinx audience."
Ulta sells 500 established and emerging beauty brands across all categories and price points, including its own private label. The brand also offers a full-service salon in every store featuring hair, skin, brow and make-up services.