Beauty shop-in-shops are trending
J.C. Penney is trying to fill the void left in its operations by Sephora’s departure by making its own branded in-store spot for beauty. With more retailers starting up the kinds of partnerships that J.C. Penney lost, it looks like more general retailers and department stores believe that customers go where the beauty shops are.
Penney’s new cosmetics area, named JCPenney Beauty, will feature an array of beauty products from across the price point spectrum, rather than just the high-end products available at Sephora, according to Fortune. Sephora shops drove four times the sales per square foot in Penney than the mainline store and it was often observed that many shoppers ignored the rest of the department store. With its broader assortment, JCPenney Beauty represents a potential way to attract shoppers drawn to more of the department store’s merchandise.
Sephora, meanwhile, is set to begin opening store-within-a-store locations in Kohl’s this fall, according to the Kohl’s website. The partnership will initially involve 200 stores with plans to expand Sephora shops to 850 Kohl’s over the next couple of years.
Target, CNBC reports, is also putting its partnership with Ulta Beauty into action. In a deal first announced last year, Ulta shops will open inside more than 100 Target locations beginning in August and expand to 800 within the next couple of years. Target has partnered with brands as varied as Apple and Levi’s on similar concepts.
Kohl’s has also demonstrated a willingness to partner with other retailer brands. The chain began accepting order returns from Amazon.com in 2019. Kohl’s has since reported that the deal has led to increased foot traffic and new customer acquisitions in its stores.
- J.C. Penney is building a post-Sephora beauty business – Fortune
- Sephora – Kohl’s
- Ulta Beauty’s first mini shops in Target will open in August as both retailers chase new customers – CNBC
- Sephora to set up shops in 850 Kohl’s stores – RetailWire
- Target Leads ‘Store Within A Store’ Trend As Retailers Show New Love For Old Tactic – PYMNTS
- Kohl’s CEO says company is stronger coming out of the pandemic – RetailWire
- Will Ulta shops turn Target into a beauty destination? – RetailWire
- Target wants a bigger slice of Apple’s pie – RetailWire
DISCUSSION QUESTIONS: What is your assessment of the value of the Kohl’s/Sephora, Ulta at Target and JC Penney Beauty shops for the respective retailers? Do you expect shop-in-shop relationships between individual retailers as well as retailers and brands to become more common over the next five years?