Target moving into high-end women's cosmetics?

Target Corp. (NYSE: TGT) is a retailer that's been known to find and feed customer niches better than any other discount retailer. From its bright store colors to trendy and chic items in several departments, the retailer has shown Wal-Mart Stores, Inc. (NYSE: WMT) that it can indeed compete. And, very well.

One of the more interesting product niches that's been explored recently has been higher-end women's cosmetics. When six beauty products rack up a retail bill of more than $200, you know there's something to be celebrated. No longer are Dillard's Inc. (NYSE: DDS) and Macy's Inc. (NYSE: M) the exclusive way many women buy those extremely lucrative cosmetic products with the hefty profit margins. Nope, Target's moving into the arena aggressively from all appearances.

Target is now stocking upper-end cosmetic brands like Clarins, Kiehl's, Origins, Bare Escentuals and Bumble and Bumble. Although the retailer's move was studied this past Tuesday, it certainly was no April Fool's joke. But do these brands care that the positioning Target will provide will undermine the premium brand luxury awareness and hefty prices at department store partners?

Many of these brands say they have no relationship with Target; therefore, Target's source may be the gray market. They are free to do that, but perhaps Target is just testing the waters of luxury cosmetics before making an official plunge in most of its national stores. Not so strangely, the experiment could easily work with Target's unique position in the market.