Image: Kohl's
Kohl’s has fast-forwarded by a couple of years putting beauty departments in all of its stores after the chain’s management found the category was driving incremental business in stores that had been treading water in recent years.
On the chain’s recent second quarter earnings call, CFO Wesley McDonald told analysts that stores with beauty departments in place have been seeing category comp increases in the 30 percent range. He said the departments were “a big success” and “we’re very happy about it” before mentioning that Kohl’s was working on bringing in new brands to give consumers even more reasons to shop its stores and kohls.com.
Michelle Gass, Kohl’s chief merchandising and customer officer, is spearheading the beauty effort for the chain. She told Maria Halkias of The Dallas Morning News, that beauty was “a missing link” for the department store’s business. During the rollout, stores with beauty departments achieved comp increases ahead of those locations without them.
In addition to bringing in luxury brands consumers want, Kohl’s is investing in training associates. The chain brought 1,200 people from its stores to Texas to attend classes put on by beauty vendors, according to the same Dallas Morning News report.
Ms. Gass said she doesn’t see beauty departments as a standalone effort, but part of the chain’s broader health and fitness push going back to 2014.
“A customer seeking a healthy life as a trend isn’t going to change,” she told the paper. “And it comes full circle back to beauty and leading a fulfilled life.”
Kohl’s recently announced a deal with Under Armour to sell its active apparel and footwear beginning next year. At the time the deal was announced, Ms. Gass described it as building “on other notable investments we’ve already made in our Active business. We believe Kohl’s is uniquely positioned to celebrate the athletes and wellness enthusiasts in every family.”
- Kohl's (KSS) Kevin Mansell on Q2 2016 Results (Earnings Call Transcript) – SeekingAlpha
- Kohl’s Corporation Reports Second Quarter Financial Results – Kohl’s Corporation
- Kohl's wants your beauty bucks, and here's why – The Dallas Morning News
- Kohl’s Announces Partnership with Under Armour to Propel its Active Business – Kohl’s Corporation
- When should brands go down market? – RetailWire
