In recent years, the beauty sector has experienced accelerated growth, becoming one of the most competitive areas among major retail companies in the United States. Large chains like Target and Dollar General have begun to focus on this niche, quickly capturing consumers' attention. This boom in the beauty category has forced other retail giants to rethink their strategies to remain relevant in an increasingly segmented market.
Walmart, historically known for its focus on affordable products for all types of consumers, hasn't been immune to this trend. Despite having invested for many years in the beauty sector, the company has decided to go a step further to compete with direct rivals like Target. Thus, Walmart has adopted a series of strategic decisions to strengthen its presence in this sector.
Walmart Is Following Target's Strategy
Target, which was a pioneer in partnering with Ulta to create spaces within its stores, has managed to capture consumers' attention with several quality beauty products. This move, initiated at the end of 2020, not only expanded its offerings but also solidified its image as a beauty destination. However, the expansion of Ulta stores within Target stopped this month, despite the addition of more than 2,000 new products to its beauty catalog.
Meanwhile, Dollar General has also taken a firm step in expanding the beauty sector. Earlier this month, the discount store chain launched a beauty event with discounts on products from select brands. The focus on value has become a key strategy to attract consumers, especially those looking for affordable options.
However, Walmart hasn't lagged behind. While the chain had already been offering accessible beauty products for years, it has now decided to expand its offerings and target a more exclusive segment.
The retail giant has incorporated more than 40 premium brands into its assortment, allowing it to attract higher-income consumers. In the latest financial results, Walmart reported an increase of nearly 5% in its sales during the fiscal year 2025.
The Important Decision Walmart Has Made with the Beauty Sector
Additionally, Walmart has launched a spring beauty event to attract even more consumers. This event, which began this month and will extend until May 31, includes more than 1,800 discounts on beauty products.
From high-end brands to more affordable drugstore options, Walmart is looking to cover all consumer needs. These types of initiatives reinforce its market positioning and allow it to compete directly with its main rivals.
One of the most notable novelties of this Walmart event is the introduction of Beauty Bars in 40 selected stores, as part of a pilot program. These spaces will allow customers to discover new brands, try products, and receive personalized advice from beauty experts. If the program is successful, Walmart could expand this offering to more locations.
With these actions, Walmart shows its commitment to growth in the beauty sector. Thus responding to consumer demands and making key decisions to remain competitive.