Sephora at Kohl’s expansion continues with 50 new small-format shops in 2023 featuring a new layout with curated, best-selling products merchandised by category
When Kohl’s announced its partnership with Sephora in 2020, the company committed to bringing prestige beauty to neighborhoods across the country, making it accessible to more Americans than ever before while enhancing the Kohl’s customer experience. This transformative partnership is bringing in new customers, and they are shopping at more than twice the frequency of our average customer. Total beauty sales were up 150% year-over-year in the first quarter of 2023, and we continue to gain market share. By the end of 2023, Sephora at Kohl’s will reach more than 900 of our stores, and as announced last August, it will continue to expand to include a Sephora presence at all of Kohl’s 1,100+ locations by 2025.
Part of the full-fleet expansion will come from new, small-format Sephora at Kohl’s stores. The first five small-format test locations opened in January and following their success, 45 additional small-format stores will open by the end of 2023. Locations will be announced later this year.
Occupying 750 square feet, the five locations in West Jordan, Utah; North Phoenix, Ariz.; Lake Wales, Fla.; Sussex, Wis.; and Delavan, Wis., have been offering shoppers a unique in-store experience that maintains the look and feel of the full-sized locations and is conveniently located at the front of the store. These five shops gave us the opportunity to understand how the small-format experience and assortment resonated with shoppers. The stores have strong customer satisfaction and customers indicated they are likely to return. Overall, the small-format stores have driven solid beauty sales and exceeded expectations giving us confidence in the wider rollout later this year.
Expertly-Curated Best Selling Product
The smaller footprint allows us to bring the Sephora at Kohl’s experience to our small-format Kohl’s stores that may not have been able to accommodate a full-sized shop. These locations still offer customers expertly-curated assortments to fit all their beauty needs from the most recognizable and coveted brands in makeup, skin, hair and fragrance, such as Rare Beauty, NARS, Charlotte Tilbury, Giorgio Armani, Amika, Lancôme, Sol de Janeiro, and Sephora Collection. Shoppers may notice a new merchandising approach in the small-format stores, with product being displayed together by category rather than brand, creating a simplified shopping experience for customers that may be unfamiliar with Sephora or the brands we carry. Shoppers have indicated that it was easy to shop the small-format Sephora at Kohl’s and they felt the store was well organized. From best selling cleansers to lip glosses and foundations, this new format allows for easy navigation and product discovery during every trip.
Unlock Twice the Rewards
With more opportunities to shop Sephora at Kohl’s comes more opportunities to earn rewards through both Kohl’s Rewards and Sephora Beauty Insider programs. Shoppers can simply link their two rewards accounts to earn 7.5% in Kohl’s Rewards when using a Kohl’s Card or 5% with any other payment method, plus 1 Beauty Insider point for every dollar spent on Sephora at Kohl’s beauty purchases.
Stay tuned for details on the 45 additional small-format locations rolling out later this year.
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believes,” “anticipates,” “plans,” “may,” “intends,” “will,” “should,” “expects" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s then current views and assumptions and, as a result, are subject to certain risks and uncertainties, which could cause the Company’s actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company’s filings with the SEC. Forward-looking statements relate to the date initially made, and Kohl’s undertakes no obligation to update them.