• Target and Ulta Beauty's combined 100 million loyalty program members will provide "exciting opportunity" in shops deal, Ulta CEO Mary Dillon told CNBC about its partnership with Target.
• "It gives millions of new guests an opportunity to experience and learn about brands and we know that guests are excited about this," she said in a "Mad Money" interview.
• "Think about this as two retail leaders … coming together to delight guests and to provide great paths for brand growth," she said.

Ulta Beauty CEO Mary Dillon told CNBC Wednesday that the cosmetics company hopes to leverage its loyalty plan through its partnership with Target.

On Tuesday, the two unveiled a new deal to add skincare shops in select Target stores starting next year. With a combined 100 million members registered to the companies' respective loyalty programs, both see an opportunity to reach new customers.

"That's the exciting opportunity," Dillon said. "It gives millions of new guests an opportunity to experience and learn about brands and we know that guests are excited about this."

Through the deal, Ulta will set up stationary shops of about 1,000 square feet and market a curated selection of beauty brands, including makeup, fragrance and hair care products, among other items. Target plans to carry Ulta stores at 100 locations and dedicate space on its website.

Ultamate Rewards, Ulta's loyalty program, has more than 33 million active users. As for Target, the company said it booked what it described as a long-term deal with the cosmetics supplier to attract customers and boost sales.

Through the deal, Ulta will train Target staff as beauty consultants. Additionally, the company will take advantage of the department chain's same-day services, such as delivery and curbside pickup.

"Think about this as two retail leaders … coming together to delight guests and to provide great paths for brand growth," Dillon said.

"Think about an Ulta Beauty within Target, the look and feel of Ulta Beauty, with an elevated prestige image, where we'll have a curated selection of brands that are emerging and established prestige brands across categories like makeup, skincare, haircare and fragrance."

Investors apparently think highly of the partnership. Ulta stock closed up more than 7% in Tuesday's session after the deal was announced, though it gave back some of those gains when it slipped nearly 4% the day after.

Shares finished the session at $255.42, up almost 1% on the year.

Target stock also rose on the news Tuesday and extend its gains on Wednesday, increasing 3% over the two trading days to settle at $159.69.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!

Mad Money Twitter

Jim Cramer Twitter

Facebook Instagram

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com