One year after Kohl’s and Sephora launched their Sephora at Kohl’s shop-in-shop collaboration, the retailers plan to roll out the successful concept to all 1,100 Kohl’s locations. Currently available in 600 Kohl’s stores across the U.S., the partnership is projected to reach $2 billion in annual sales by 2025.
Kohl’s reports that customers who shop the Sephora space are shopping across the store, with approximately half adding at least one additional category to their purchases. The department store retailer noted that it has seen more than 1 million new customers since the launch of the partnership in August 2021 and that the collaboration is attracting customers who are younger and more diverse.
“We are incredibly proud of how our companies have come together so seamlessly to create a truly unprecedented and unique in-store experience,” said Michelle Gass, CEO of Kohl’s in a statement. “We couldn’t be happier with how our partnership with Sephora continues to perform and achieve the goals we set out to accomplish. Our success to date proves that this partnership is working, and this expansion is the next, exciting chapter in our history together.”
After opening 200 Sephora at Kohl’s locations in 2021 and seeing a mid-single digit percentage sales lift, the partnership grew to include nearly 400 stores in 2022, with the same growth rates reported this year. By 2023, Kohl’s anticipates it will have opened 850 2,500-square-foot Sephora at Kohl’s locations.
The Sephora at Kohl’s shop-in-shops are exhibiting strength across all categories, including skincare, makeup and fragrance. Top-selling brands including Sephora Collection, Sol de Janeiro, NARS, Fenty Beauty, Charlotte Tilbury, OLAPLEX and Too Faced have performed so well that additional labels such as Versace, Murad, Clarins, Living Proof, Jack Black and Voluspa joined this year. Following a strong performance at Sephora at Kohl’s, Charlotte Tilbury will expand its assortment in the coming weeks.
In addition to the expansion of prestige brands, the shop-in-shop will grow its fragrance offerings and men’s grooming will receive a dedicated space.
“At Sephora, our mission continues to be welcoming more people into the prestige beauty community, and we are achieving exactly that,” said Jean-André Rougeot, President and CEO for Sephora Americas in a statement. “In the past 12 months we’ve been able to bring the premium experience Sephora is known and loved for to new communities across the country, giving them the access to beauty that we know they are yearning for. With a significant number of new Beauty Insiders, including the successful re-engagement of clients and holiday shopping ahead, the reality is that one year results are very encouraging, but this is just the beginning.”