Kohl’s details its Sephora makeover for 2022
Sephora at Kohl’s shops have been a success, and remodels are underway to add 400 of the beauty concepts inside the retailer’s stores this year.
Kohl’s has published a list of the locations across 36 states that will get a Sephora store-within-the-store, bringing the total of Sephora at Kohl’s to 800. The retailers plan to add another 200 next year, exceeding the 850 initially predicted when the 2,500-square-foot shop-in-shop concept was first announced in 2020.
“The quick and vast rollout of Sephora at Kohl’s is a testament to how much we believe in this partnership and making prestige beauty more accessible to people everywhere,” Doug Howe, Kohl’s chief merchandising officer, said in a statement.
Kohl’s CEO Michelle Gass has called the deal with Sephora “a game-changing partnership for us.”
Ms. Gass, speaking on Kohl’s third quarter earnings call in November, said the stores with Sephora shops have seen “extraordinary growth” in beauty sales.
The shops have also brought in new customers, with 25 percent of those coming for Sephora being first timers for Kohl’s. These new shoppers, who are younger and more diverse than the typical Kohl’s shopper, are not just buying cosmetics. Stores with Sephora shops have seen mid-single-digit sales growth.
“Roughly half of our customers buying Sephora are attaching at least one other category in their purchase across all of our lines of business,” said Ms. Gass. “We’ve already started to see customers return, which is encouraging and is expected to build as they get to know Kohl’s. From the outset, this partnership was structured to drive joint success, and we couldn’t be happier with how our teams are collaborating.”
The timing of Kohl’s announcement is intended to build anticipation among consumers where the new shops will be located. It also addresses challenges from activist investors impatient for bigger returns on their holdings.
The company is seeking to beat back Macellum Advisors’ attempt to take control of its board and force the retailer to split off its real estate assets and/or its ecommerce operations from its physical stores. Macellum has also advocated for an outright sale of Kohl’s, should it find a buyer for its business. Kohl’s recently adopted a poison pill provision to ward off would-be acquirers after receiving unsolicited bids.
- Kohl’s Unveils Locations of 400 New Sephora at Kohl’s Shops Opening This Year – Kohl’s
- Sephora to set up shops in 850 Kohl’s stores – RetailWire
- How big a win is Sephora for Kohl’s? – RetailWire
- Kohl’s (KSS) Q3 2021 Earnings Call Transcript – The Motley Fool
- Kohl’s Responds to Director Nominations from Macellum Advisors; Company Reaffirms Commitment to Maximize Value for All Shareholders – Kohl’s
- Kohl’s Board of Directors Provides Update on Review of Unsolicited Expressions of Interest – Kohl’s
DISCUSSION QUESTIONS: Will the new customers being brought in by Sephora have a significant effect on Kohl’s brand reputation and a material effect on its sales and earnings? Do you think Sephora at Kohl’s shops are a blueprint for future partnerships that Kohl’s will seek to develop?