Marketplace Morning Report: Target and Ulta Announce Breakup
Release Date: August 15, 2025
Host: David Brancaccio

1. Global Economic Strains and U.S.-Russia Relations

David Brancaccio opens the episode by addressing significant international developments affecting the global economy. Highlighting the imposition of the first international economic sanctions on Russia, Brancaccio underscores the gravity of these measures in the context of ongoing geopolitical tensions.

Steve Rosenberg, Russia editor with Marketplace’s newsroom partners at the BBC, provides an in-depth analysis of Russia's economic decline:

"The budget deficit is increasing. Oil and gas revenues are decreasing. Many branches of industry are approaching recession."
(01:27)

Rosenberg suggests that these economic challenges might be influencing President Vladimir Putin's willingness to negotiate, especially ahead of the scheduled meeting with President Trump in Anchorage. He posits that the deteriorating economic conditions could be prompting Putin to consider concessions and compromises:

"Perhaps this is the moment to make concessions, to make compromise."
(01:36)

2. End of the Target and Ulta Beauty Partnership

Transitioning to the retail sector, David Brancaccio reports on the dissolution of the partnership between Target and Ulta Beauty, a collaboration that began in 2021. This partnership involved housing 600 mini Ulta shops within Target stores, aiming to enhance Target’s beauty and wellness offerings while expanding Ulta’s brick-and-mortar presence.

Matt Levin from Marketplace provides context on the partnership's inception and eventual decline:

"Ulta was broadening its geographic footprint with a brick and mortar behemoth whose sales were soaring. But just like people, companies change."
(02:17)

Olivia Johnson, a retail professor at the University of Houston, draws parallels between corporate relationships and personal partnerships, emphasizing the impact of external factors such as inflation and political controversies on Target's performance:

"Inflation and political controversy have caused lackluster sales at Target the past couple years."
(02:35)

Jenny Liu from the Yale School of Management adds nuance to the discussion by contrasting the shopping experiences at Ulta and Target:

"You might go into Ulta for more of an experience, whereas with Target, you might be going to stock up on some frequently purchased items."
(03:21)

Levin concludes by highlighting the practical challenges of integrating beauty services within a general retail environment:

"It's hard to put a salon chair in a Target."
(03:29)

3. Mental Illness in Nursing Homes

David Brancaccio shifts focus to a pressing issue in healthcare: the prevalence of individuals with serious mental illnesses residing in nursing homes. Contrary to common perceptions, many nursing home beds are occupied by residents battling conditions like schizophrenia, bipolar disorder, or psychosis, rather than solely by the elderly.

Elizabeth Gothrop, a data journalist with APM Research Lab, elaborates on how systemic issues contribute to this trend:

"It usually starts with a hospital stint. Hospitals are supposed to discharge patients somewhere safe, and nursing homes are a relatively easy way for hospitals to check that box."
(04:36)

Gothrop raises concerns about the adequacy of care in these facilities for mental health patients:

"We found cases where people with mental illness hurt other people, which shouldn't happen if people are getting the right treatment and if there's enough staff."
(05:06)

She further highlights the financial incentives that inadvertently funnel mental health patients into nursing homes:

"The federal government won't let Medicaid dollars pay for psychiatric institutions. So states have to pick up the bill there. But feds will pay for nursing homes."
(05:57)

Addressing potential solutions, Gothrop points to the need for expanded community-based treatment programs:

"Advocates argue we should make it easier for Medicaid to pay for those programs. There's a provision in the Trump administration's tax and spending law that could help states with that."
(06:20)

However, she notes the complexities introduced by conflicting provisions within the same law:

"The law also has provisions that are likely to result in a lot of people on Medicaid losing their health insurance. So it's not clear how effective that'll be."
(06:50)

4. Costco's Stance on Abortion Pills

In the realm of healthcare and corporate responsibility, David Brancaccio reports that Costco has decided not to stock mifepristone, commonly known as the abortion pill, in its pharmacies within states where its sale is legal. Costco cites projected low demand, suggesting that most patients obtain the medication directly from their healthcare providers.

The decision comes amidst increasing pressure from anti-abortion groups targeting retailers and pharmacies to discontinue the supply of abortion medications. In contrast, major competitors like CVS and Walgreens have affirmed their commitment to providing mifepristone where it is legally permitted.

Brancaccio also mentions that Kroger, another major grocery and pharmacy chain, is currently reviewing its position on the matter, indicating potential shifts in retail pharmacy offerings related to reproductive health services.

Conclusion

In this episode of the Marketplace Morning Report, David Brancaccio traverses a spectrum of critical topics, from global economic sanctions impacting U.S.-Russia relations to significant shifts in retail partnerships between Target and Ulta Beauty. He delves into the troubling trend of mental illness prevalence in nursing homes, uncovering systemic shortcomings and financial incentives that exacerbate the issue. Additionally, Brancaccio addresses Costco's controversial decision to cease stocking the abortion pill, reflecting the broader societal and corporate tensions surrounding reproductive healthcare.

Listeners gain a comprehensive overview of these multifaceted stories, enriched by expert insights and data-driven analysis, ensuring they are well-informed on the key economic and social developments shaping the current landscape.