Walmart makes big move into beauty to rival Target

The company's decision to focus on beauty could not have come at a better time. When you think of a store that's loaded with cosmetics and beauty products, your mind doesn't necessarily land on Walmart. And that's reasonable. Walmart may be the perfect place to buy cheap sneakers, underwear, and cleaning supplies. But it's probably not the first store on your list if you're looking to refresh your cosmetics bag. Target, on the other hand, is known for its extensive and curated assortment of beauty products. Not only does Target offer a large mix of affordable staples and trendy brands, but its in-store partnership with Ulta has long made it a beauty destination. Given that the average American spends $722 every year on their appearance, that's a big market to capture. And Walmart clearly wants a piece of it. Walmart is now making a more aggressive move into beauty, signaling that it wants a larger share of a fast-growing and highly profitable category. And that push is coming at a time when Walmart's customer base may be changing. Walmart goes all-in on beauty Walmart has long maintained a reputation as a budget-friendly retailer with a wide selection of products. But now, the company is trying to improve sales in the beauty aisle. And it's working toward that goal aggressively. Walmart is rethinking store layouts to place beauty more prominently in high-traffic areas. The company is also investing in upgraded merchandising designed to improve the in-store experience. In addition, Walmart is training beauty experts associates to provide more targeted guidance on skincare, cosmetics, and hair care products. Associates in this role will be taught "the art of asking the right questions to understand what a customer truly needs and the techniques to help someone navigate a sea of over 7,000 products to find their perfect match," the company said. Walmart's new beauty training program will take place across 22 pilot stores in Texas and Arkansas. If it proves to drive sales, the company will most likely expand it to other markets. A strategic move for Walmart Walmart's push into beauty is coming at a time when the company is becoming increasingly reliant on higher-income customers for revenue. During the company's Q4 2026 earnings call, President and CEO John Furner told investors, "This quarter, the majority of our share gains came from households making more than $100,000." Furner also confirmed that households earning below $50,000 are getting increasingly squeezed. The smart thing about Walmart's new beauty initiative is that it caters to both types of consumer. Stronger earners may have the wiggle room in their budgets for higher-end products, while cash-strapped consumers may be looking for savings in that category. If Walmart can address the needs of both groups, it can excel at growing this area of the business. At the same time, if Walmart succeeds in becoming an authority in beauty products, it can position itself to capture new customers once economic conditions improve and budgets open up. Granted, even during tough economic times, consumers tend to prioritize beauty products. But if Walmart does the legwork now, the company might really shine once shoppers find themselves less cash-strapped - especially since Grand View Research says the U.S. beauty and personal care market is expected to grow from 109.56 billion in 2025 to 196.33 billion by 2033. The move also comes at a time when Target has pledged to improve in a number of key categories, beauty being one of them. During Target's most recent earnings call, the company said it's looking to "accelerate our path as a beauty destination." If Walmart is able to get there first, it could gain a huge edge in this key category.