(Reuters) -Ulta Beauty and Target on Thursday said they have mutually agreed to end their partnership in 2026.

The partnership, which involved small Ulta outlets within the Target stores, was first announced in November 2020, with the initial rollout in August 2021. The deal was aimed at giving Target shoppers greater access to prestige beauty brands.

Target has been facing softening demand as customers pulled back on discretionary purchases due to ongoing worries about inflation and the economy, due to U.S. President Donald Trump's trade war.

Shares of both companies were down about 2% in premarket trade.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Vijay Kishore)