Sephora, the popular French cosmetics retailer, is set to open shops in approximately 850 locations of Kohl’s Corp by 2023. This strategic move is in line with Kohl’s focus on expanding its beauty category. As a result of this announcement, Kohl’s shares experienced a 14% surge in early trading.

The Covid-19 pandemic has led to an increased demand for beauty products, as well as athleisure apparel and home improvement items, as people spend more time at home and prioritize self-care. Recognizing this trend, Sephora aims to tap into the market by partnering with Kohl’s. The first 200 Sephora stores within Kohl’s locations are scheduled to open in fall 2021. Furthermore, Sephora will become the exclusive beauty partner on Kohl’s website. Currently, Sephora operates 500 stores in the Americas and is owned by LVMH, the owner of Louis Vuitton.

Similarly, Ulta Beauty Inc recently announced a long-term partnership to have its stores located next to Target Corp’s beauty section, highlighting the growing significance of beauty products in the retail industry.

Kohl’s has also expressed its ambition to significantly boost its sales of beauty products, aiming to triple its current sales. Over the past five years, the company has already witnessed nearly 40% growth in this category.

In an effort to enhance the in-store experience and drive foot traffic, Kohl’s has actively sought partnerships. The company has collaborated with Amazon.com Inc, WW International Inc, and Planet Fitness Inc, offering their services within its stores. These collaborations are aimed at attracting customers and increasing store visits.

It is important to note that Kohl’s has been a long-standing partner of J.C. Penney Co Inc, which currently hosts Sephora stores. However, J.C. Penney Co Inc recently announced that its partnership with Sephora will continue until the end of their current agreement, set to wind down by 2023, as reported by the Wall Street Journal.

The partnership between Sephora and Kohl’s presents a promising opportunity for both companies to leverage the growing demand for beauty products. Sephora will be able to expand its reach and presence by entering Kohl’s stores, while Kohl’s can benefit from the allure of Sephora’s offerings, potentially driving higher foot traffic and sales. As beauty remains a highly sought-after category, this collaboration is expected to yield positive results for both Sephora and Kohl’s.

Useful Links:
1. Sephora Official Website
2. Kohl’s Official Website