By Fernanda Tronco TheStreet
There seems to be a huge beauty expansion trend among some of the nation's biggest retailers, using value as an incentive to attract customers.
Companies like Target (TGT) , Dollar General (DG) , and Walmart have begun heavier investments in this category as part of their new growth strategy to boost sales.
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Target was among the first retailers to focus on beauty to attract consumers. In late 2020, it partnered with Ulta to build Ulta shop-in-shops inside various Target stores, which launched a year later.
This February, the retailer introduced over 2,000 products from 50 new brands to its beauty assortment, making the addition more enticing to customers by keeping its prices below $20.
However, Target's Ulta in-store expansion was paused this month as the beauty company revealed in its latest earnings that it had lost market share in the beauty category for the first time ever.
Related: Walmart makes shocking decision about its future amid uncertainty
Dollar General is another retailer that entered the beauty expansion this year by introducing accessible and on-trend products from new international brands and its exclusive partners.
To promote this latest product addition, the discount retailer launched a '7 Days of Savings Beauty Event' at the beginning of this month. The value-focused event featured daily discounts on various beauty and personal care products from select brands.
Walmart expands its premium offerings to attract wealthier consumers
As America's largest multinational retailer, Walmart (WMT) couldn't fall behind its competitors.
Although Walmart has invested in the beauty sector for decades, providing affordable beauty products to make them more accessible for all types of consumers, it recently decided to attract a wealthier market by adding more exclusive brands to grow profits.
During an earnings call, the retail giant claimed that lower-income families continue to choose Walmart over other retailers. However, more higher-income families are starting to shop at Walmart than at its competitors.
Related: Target shares new pricing program customers should embrace
Since last year, Walmart has expanded its beauty offerings by adding over 40 premium brands and introducing emerging brands.
This investment has proven successful for the retailer, as its U.S. sales increased nearly 5% for the full fiscal year of 2025 compared to the year prior, which is reflected in its latest earnings report.
Walmart invests further in its beauty sector
To dive deeper into the beauty expansion growth strategy, Walmart is launching a Spring Beauty Event this year, offering over 1,800 rollbacks and savings on multiple beauty products from high-end to drugstore brands across various categories, including skincare, hair care, makeup, and more.
This seasonal event has already begun and will run through May 31 at Walmart stores nationwide and online through its official website.
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To elevate the in-store experience during this year's event, Walmart is introducing Beauty Bars in 40 select stores nationwide as part of a pilot program. If successful, this addition could potentially expand to more locations, but the company has not made a statement regarding a potential expansion.
This will allow customers to discover brands, test new products, and talk to specialized beauty experts who can answer beauty-related questions and help them find products.
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This story was originally published April 22, 2025 at 11:17 AM.
