Sephora moves into Kohl's with "Inception Retail" (it's really about anchoring)
Spraying on $20 worth of Caudalie toner... while "browsing" Sephora. You'll be able to do that at Kohl's soon, too: Sephora will open mini-shops in 850 Kohl’s stores by 2023. Sephora has stores in (now bankrupt) JCPenney — now it's winding those down to move in with Kohl's for 10 years. Sephora's luxurious parent LVMH approved the serious relationship.
- For Sephora: “This is about reach.” Kohl’s 1K+ stores have little overlap with Sephora's standalone locations, which tend to be in big cities.
- For Kohl's: It’s about attracting younger shoppers. Kohl’s hopes Sephora will help triple its beauty sales. Skincare has done well in the pandemic.
- For shoppers: More Sephora locations + less parking hassle. And: you can still earn Sephora loyalty points at Kohl's (free mini mascaras FTW).
Hands off the Fenty bronzer... Sephora's arch-rival Ulta Beauty recently announced it's moving into Target with the same "Inception Retail" model (store-within-a-store). Here's how Sephora's Kohl's relationship is different:
- PDA: "We're going to be very loud" — Kohl's CEO says shoppers will clearly see Sephora's mini-storefronts from outside Kohl's (equivalent of a couples pic on Insta).
- Exclusivity: Sephora's brands will become Kohl’s only beauty offerings in those stores and online, replacing the current ones (#NewBae).
Beauty is an anchor product... and Kohl's desperately needed a good one. Anchor products are things you go through fast and buy routinely. For CVS, that's prescription meds. For Chewy, that's dog food. For Kohl's, that's foundation. Now that malls and department stores are struggling, compelling anchor products are more important than ever. Kohl's is betting that Sephora's moisturizers will be just that.