Walmart Doubles Down on Beauty in a Bid to Challenge Target’s Dominance
When you think of a store stocked with cosmetics and beauty products, Walmart probably doesn’t come to mind. And that’s fair. It’s the place for cheap sneakers, underwear, and cleaning supplies—not necessarily the first stop for refreshing your makeup bag.
Target, by contrast, has built a reputation as a beauty destination. Between its curated mix of affordable staples and trendy brands, plus an in-store partnership with Ulta, it’s long been the go-to for shoppers looking to stock up on everything from drugstore lipsticks to higher-end serums.
But Walmart is now making a more aggressive play for that same customer. With Americans spending an average of $722 a year on their appearance, the beauty market is too big to ignore—and Walmart clearly wants a bigger slice.
The retailer is rethinking store layouts to put beauty products in high-traffic areas, upgrading merchandising to improve the in-store experience, and training a new wave of “beauty expert” associates. These employees will be taught, as the company put it, “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 pilot program is launching in 22 stores across Texas and Arkansas. If it drives sales, Walmart will likely expand it to other markets.
This push comes at a pivotal moment. During Walmart’s Q4 2026 earnings call, President and CEO John Furner noted that “the majority of our share gains this quarter came from households making more than $100,000.” At the same time, he acknowledged that households earning under $50,000 are feeling increasing pressure.
That dual reality may be exactly what Walmart is banking on. Higher-income shoppers have room in their budgets for premium products, while cost-conscious consumers are hunting for deals. If Walmart can serve both groups effectively, it could carve out a powerful position in the beauty aisle.
“It’s a smart move, but let’s not pretend Walmart is suddenly Sephora,” said Claire Morrison, a retail analyst based in Chicago. “They’ve got the traffic and the data, but beauty is about experience and trust. You don’t build that overnight.”
Others are more optimistic. “Walmart has been underestimated before,” said Marcus Tran, a supply chain consultant in Dallas. “They’ve got the scale to make this work, especially if they lock in exclusive brands. Target should be paying attention.”
Not everyone is convinced. “Oh please, Walmart? The place where the lighting makes everyone look like they haven’t slept in three days?” said Jenna Kowalski, a beauty blogger from Austin. “I’ll believe it when I see an actual makeup artist on the floor, not just someone who watched a training video.”
The timing also matters. Target has pledged to “accelerate our path as a beauty destination,” according to its most recent earnings call. If Walmart can establish itself as a credible player first, it could gain a crucial edge.
And the market is only growing. Grand View Research projects the U.S. beauty and personal care market will climb from $109.56 billion in 2025 to $196.33 billion by 2033. Even in tough economic times, consumers tend to prioritize beauty products. If Walmart does the groundwork now, it could be well-positioned to capture new customers when budgets loosen up.
This story was originally published by TheStreet on May 6, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.