Kohl’s to Roll Out 200 Babies R Us, 140 Sephora Stores at Its Retail Locations This Year

Article originally posted on HERE on March 18, 2024

Kohl’s (NYSE: KSS) has announced plans to roll out 200 Babies R Us shops this fall at existing Kohl’s locations. The first Babies R Us shop will debut at an undisclosed Kohl’s store in August.

Additionally, the company plans to open 140 more Sephora shops at Kohl’s this summer.

The Menomonee-based retail giant is partnering with WHP Global, the owner of the Babies R Us brand, in the rollout. WHP Global purchased the Babies R Us and Toys R Us brands in 2021, four years after the brands’ parent company filed for Chapter 11 bankruptcy.

WHP Global is undertaking a similar rollout of Toys R Us locations at cruises and airports, along with new flagship stores.

Kohl’s has more than 850 Sephora shops within Kohl’s stores, with each Sephora occupying roughly 2,500 square feet. Currently there are Sephora shops within Kohl’s stores across 48 states.

“Not only are we well on our way to having a Sephora presence in every Kohl’s store across America, but we’re also seeing strong sales momentum from our current stores, and the experience is bringing new customers to Kohl’s,” says Nick Jones, Kohl’s chief merchandising and digital officer.

Kohl’s reports that Sephora at Kohl’s sales exceeded $1.4 billion in fiscal-year 2023, and the company expects annual sales to exceed $2 billion in fiscal-year 2025.

The Babies R Us shops inside Kohl’s will range from 750 to 2,500 square feet of dedicated space and carry baby gear, activity, bath, furniture, feeding and safety products. These spaces will complement Kohl’s existing assortment of baby apparel, which will be adjacent to the new offerings, creating a comprehensive baby shop for customers.

Kohl’s customers will also be able to shop for baby products on Kohls.com and use the Babies R Us at Kohl’s registry to build and share gift lists. The partnership will bring a new wave of baby brands to Kohl’s, which already carry Graco, Chicco, Boppy, Skip Hop, Delta Children, Fisher-Price and Carter’s.

Founded in 1962, Kohl’s currently has more than 1,100 stores in 49 states.

In summer 2022, Franchise Group, owner of The Vitamin Shoppe brand, offered to acquire Kohl’s in a deal valued at $8 billion. Kohl’s ultimately decided to terminate discussions to sell its business citing volatility in the retail sector.

Kohl’s announced the Babies R Us and Sephora store rollouts in conjunction with its fiscal year 2023 financial results. For the fiscal year ending on Feb. 3, 2024, Kohl’s reports its net sales decreased 3.4 percent year-over-year to $16.6 billion. Same-store sales were also down 4.7 percent year-over-year.

The company’s stock price closed on Monday, March 11 at $27.19 per share, up from $22.82 a year ago, a more than 19 percent increase.