What: Mass retailers like Target and Walmart have successfully attracted premium and indie beauty brands by investing in beauty shop-in-shops, exclusive assortments, and better merchandising strategies.

Why it is important: This shift allows premium beauty brands to reach a broader customer base through the expansive footprint of big box retailers, helping them scale quickly, though it also presents challenges like increased competition and operational pressures.

Big box retailers have increasingly focused on premiumising their beauty offerings, attracting a growing number of indie and premium brands. Through initiatives like Target’s partnership with Ulta Beauty and Walmart’s collaboration with Space NK, these retailers have significantly expanded their beauty assortments, bringing in brands such as Fenty Beauty and Blake Lively’s Blake Brown hair care line. Mass retailers, with their larger footprint and square footage, offer brands more visibility and shelf space than specialty stores like Sephora, with Target alone boasting over 1,500 locations in the U.S. This strategic shift has helped these retailers edge out drugstore chains as key locations for beauty shopping, even attracting higher-income shoppers.

How big box retailers won over premium beauty brands