The shop-in-shop partnership between Target and Ulta Beauty was allegedly doomed by rampant theft of the cosmetics company’s expensive merchandise — including at least $10,000 a month at one store.
The retail giants last week announced that they’ve “mutually agreed” to terminate their union — where Ulta’s widespread make-up objects were offered at 610 Target places around the nation.
Execs from both firms lauded the “synergy” they loved after becoming a member of forces in 2021, but many claiming to be present and former Target employees flooded Reddit to allege that shoplifting was the actual wrongdoer behind the partnership’s demise.
The image above from 2018 reveals a Target division store in San Antonio. AP
“The amount of theft is f–king insane. I could be wrong but at least 10k a month in theft,” one purported Target employee in the unnamed store posted on Reddit earlier this yr.
The grievance echoed those made by others in the r/Target and r/Ulta threads that blamed brazen bandits for snatching Ulta’s high-end cosmetics at understaffed Target shops.
Organzied retail theft surged after the pandemic, ensuing in main retailers, including Target, being pressured to put objects under lock and key.
Nevertheless, the security precautions seemingly did little to stop shoplifting at some places. One Target employee claimed 40% of all Ulta merchandise obtained all through the yr had vanished after checking stock reports.
“Thousands of dollars just in that tiny little beauty section,” the alleged worker wrote under the deal with Efficient_Raise.
“At my store, it’s the one area with the highest theft.”
Self-identified Target workers took to Reddit and wrote of high incidences of shoplifting that weighed down the partnership with Ulta. MelissaMN – stock.adobe.com
Another claimed a group of thieves hauled off $8,000 in Ulta merchandise after strolling in with trash luggage.
Target and Ulta did not reply to requests for remark about the shoplifting allegations.
They also supplied few particulars behind their determination to pull the plug on the partnership, which will finish next August.
Products are locked behind glass as a individual retailers at a Target store in the Harlem neighborhood in Manhattan in 2023. Getty Images
A observe by analysts at TD Cowen pointed to “shrink” – the industry time period for lost or stolen merchandise – as one of the causes for the “conscious uncoupling,” according to commerce publication Retail Dive.
Another industry insider steered Ulta needed to distance itself from Target’s poisonous fame after the chain was hit by repeated boycotts over Pride merchandise and its determination to scale back controversial DEI insurance policies, Fortune reported.
The partnership’s unraveling turned public in April when Ulta CEO Kecia Steelman revealed the company would “pause” increasing the mini-stores to “leverage the learnings.”
One Target worker took to Reddit and described thieves strolling in with trash luggage to fill with Ulta merchandise — a single heist totaling $8,000 in losses. MKPhoto – stock.adobe.com
Rick Gomez, Target’s government vice president and chief industrial officer, said the retailer is “proud of our shared success” with Ulta.
Target “remains committed to offering the beauty experience consumers have come to expect,” he added.
The retailer launched 2,000 new magnificence merchandise and 50 manufacturers in February. It also added cosmetics to its Bullseye’s Playground low cost part.