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24 Jun

At Smaller Stores, Kohl’s Will Open Scaled-down Sephora Shops

At Smaller Stores, Kohl’s Will Open Scaled-down Sephora Shops

Kohl’s Corp. is creating scaled-down Sephora shops to suit into its smaller locations.

For fall 2023, the plan is to have 750-square-foot Sephora shops operating at 50 Kohl’s locations that are on average 35,000 square feet and can be unable to accommodate the everyday 2,500-square-foot Sephora shop-in-shop. Kohl’s full-size stores average 80,000 square feet.

The small-format Sephora shops will merchandise products by category fairly than by brand, as seen in traditional Sephora stores and on the Kohl’s Sephora shops-in-shop. “Think better of foundation, better of fragrance, etcetera,” a Kohl’s spokeswoman explained.

Among the many brands being merchandised within the smaller formats are, in makeup, Rare Beauty, Fenty Beauty, NARS, Charlotte Tilbury, Sephora Collection, Ilia, Lancôme and Too Faced.

The skincare/body care category offers Dr. Dennis Gross, Sol de Janeiro, Biossance, Dr. Jart and Supergoop.

In hair, the Briogeo, Amika and Drybar brands are displayed and the fragrance category includes Giorgio Armani, Prada and YSL.

While 50 scaled-down Sephora shops are within the works, “We haven’t shared the overall variety of small-format Sephora shops,” said the spokeswoman. “By the top of 2023, we could have a Sephora presence in greater than 900 of our stores, including greater than 850 of the two,500-square-foot shops and 50 of the 750-square-foot shops. We’re on target to have a Sephora presence in all stores by 2025.” Kohl’s operates 1,100 stores.

Kohl’s tested this scaled-down Sephora shop inside its Sussex, Wisconsin location.

Customizing its Sephora shops to suit into additional Kohl’s locations reflects how confident Kohl’s is with its Sephora strategy and the way critical it’s to the retailer’s turnaround efforts.

“Sephora at Kohl’s continues to be a shiny spot for the business because the partnership outperforms expectations,” Nick Jones, Kohl’s chief merchandising and digital officer, said in an announcement. “Opening these small-format Sephora at Kohl’s shops is allowing us to deliver a prestige beauty experience to much more shoppers across the country, further enhancing the client experience. Moreover, the expertly curated assortment of Sephora’s bestselling products in these small shops are merchandised in a way that makes it easy to seek out popular favorites, and discover recent brands and products.”

In keeping with the Menomonee Falls, Wisconsin-based Kohl’s, total beauty sales were up 150 percent year-over-year in the primary quarter of 2023. The corporate also said it continues to achieve market share in beauty. The corporate also indicated in its first-quarter report that comparable beauty sales were up within the midteens within the 200 shops opened in 2021, and the sales trends within the 400 shops opened in 2022 continued to exceed the plan.

Nonetheless for the corporate overall, sales decreased 3.3 percent to $3.36 billion, from $3.47 billion, and comparable sales decreased 4.3 percent for the quarter ended April 29. Net income was flat at $14 million.

The Sephora rollout has also been expensive, requiring quite a lot of money. Installing the Sephora shops results in further changes on the selling floors to raised position bestselling categories and types. From an expense and capital perspective, the smaller Sephora shops will add some incremental capital spend and expense within the third quarter relative to last yr, the corporate said. But money is a priority, considering at the top of the primary quarter of 2023, Kohl’s had $286 million in money in comparison with $646 million at the top of the primary quarter of 2022. Kohl’s ended 2022 with $153 million in money versus $1.59 million at the top of 2021.

Identical to the two,500-square-foot Sephora shops, the small-format shops are situated on the front of the shop. Most frequently women’s, young women’s and purses are adjoining to Sephora at Kohl’s. “That said, given the unique layouts and architecture of our stores, the adjoining departments do vary,” the spokeswoman added.

Kohl’s in January began testing five small-format Sephora locations in West Jordan, Utah; North Phoenix, Arizona; Lake Wales, Florida, and Sussex and Delavan, Wisconsin. “These stores drove solid beauty sales and exceeded expectations, giving us confidence in the broader rollout to 45 additional stores by the top of 2023,” the spokeswoman indicated. “The smaller footprint allows us to bring the Sephora at Kohl’s experience to our small-format Kohl’s stores that will not have been in a position to accommodate a full-sized shop.”

Within the 750-square-foot shops, merchandising by category fairly than by brand “creates a simplified shopping experience for patrons that could be unfamiliar with Sephora or the brands we supply and results in efficient stores as the general assortment is the curated better of the very best inside Sephora.” 

Merchandising by category at the brand new Sephora shop at Kohl’s in Sussex, Wisconsin.

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