Though Kohl’s had never been considered a “destination” for beauty, it had been building up its expertise in the space via concept departments for the better part of two years. And 2021 was the time those beauty ambitions went into overdrive.
In December 2020, Kohl’s and Sephora inked a long-term strategic partnership to open 200 Sephora stores within Kohl’s stores in fall 2021, with 850 locations planned by 2023.
Kohl’s Sephora destination, which debuted in August, looks and feels like a best-in-class Sephora experience — even better than some standalone Sephora stores. They come complete with a compelling assortment of about 125 brands (including Sephora exclusives like Fenty Beauty, Rare Beauty and JLo Beauty), 8,500 products, a Sephora branded door, beauty-worthy lighting and signage, Sephora-trained Kohl’s advisors and digital and e-commerce integrations.
“A little over a year ago, I talked about a pivot from a department store-like experience into more of a specialty concept standing for the active and casual lifestyle,” said Michelle Gass, Kohl’s CEO. “We’ve been making tremendous progress across all fronts. But really, the question for us was, ‘How do we give our customers a phenomenal beauty experience to complete that strategy?’”
Gass said that Sephora was at the top of her dance card in fulfilling that goal, calling the retailer the “best of the best.”
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“To have the opportunity to partner with Jean-André [Rougeot, president and CEO of Sephora Americas] and the team, and for us to get into beauty — not in a small way, but in a big way — is a huge win for both sides,” she said.
Early reads are strong. Gass said that Kohl’s stores with a Sephora presence have seen a sales lift across the store, with more than 25% of of the Sephora shoppers being new to Kohl’s. They’re also younger and more diverse than the existing Kohl’s customer — a key result, as both companies are attempting to lure Gen Z.
Gass said there is opportunity to elevate the Sephora experience even more in 2022. That’s because the locations aren’t just meant to signify a superficial facelift, but rather a change of focus for Kohl’s across storytelling, product and merchandising.
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“When a customer walks in, the first thing they see is a beautiful Sephora shop right in front of them. And then they turn around and see this active shop with powerhouse brands like Nike, Under Armour, Adidas and even Champion, in a time when these brands are pulling out of wholesale distribution… This is a competitive advantage for us,” she said. “We want to be seen as the partner of choice.
