Kohl’s Expands With Babies”R”Us In-Store Shops

Kohl’s, the department store chain, is expanding its retail strategy by partnering with WHP Global, owner of Toys”R”Us and Babies”R”Us, to open Babies”R”Us shops in its stores. This move comes as Kohl’s reported mixed results for its fourth quarter amid challenging sales and weak full-year guidance.

Approximately 200 Babies”R”Us shops are set to open in 200 Kohl’s stores in fall 2024, with the first opening in August 2024. These in-store shops will range from 750 to 2,500 square feet, offering a variety of baby products including gear, activity, bath, furniture, feeding, and safety items.

The partnership aims to introduce new customers to Kohl’s, including younger shoppers, while providing an expanded assortment of baby products both in-store and online. Kohl’s Rewards members will earn rewards on Babies“R”Us purchases and can utilize a registry for building and sharing gift lists.

In Kohl’s recent and disappointing fourth-quarter report, the company’s net income stood at $186 million compared to a total net loss of $273 million in the previous year’s report. Kohl’s revenue also fell slightly to $5.71 billion, with same-store sales down by 4.3%.

Meanwhile, WHP Global is expanding its reach by partnering with El Puerto de Liverpool to introduce Babies”R”Us stores in Mexico, extending its footprint in the Latin American market. This initiative follows the successful launch of Toys”R”Us in Mexico and the opening of the first Babies”R”Us store in the U.S. under WHP at American Dream in New Jersey.

Tom Kingsbury, CEO of Kohl’s, emphasized the significance of evolving assortments to meet customer needs, positioning Kohl’s as a go-to brand for families. With over 1,100 stores across 49 states and a robust e-commerce presence, Kohl’s continues to seek opportunities for growth and innovation in retail, strategically navigating through an ever-changing market landscape and ensuring its sustained relevance in the industry.