What: Catering to the needs of your local customer is the essence of retail.

Why it is important: Tourists are to be considered as the cherry on the cake but the past 3 years showed that they should not be considered as the engine of the department stores’ business.

Kohl's plans to open 250 additional Sephora at Kohl's locations in 2023, reaching a total of 850 stores and covering nearly 80% of Kohl's footprint.

The 2,500 sq. ft. shops have Sephora-trained beauty advisors and provide a customer experience similar to standalone Sephora stores. Such a partnership benefits both companies, with Kohl's reporting eight million customers buying Sephora products in 2022, and Sephora gaining access to new customers.

The collaboration follows a portfolio approach, adapting to local communities and their specific needs. A portfolio strategy involves analyzing local markets and tailoring stores to the community, ensuring they don't cannibalize each other's sales. The Sephora at Kohl's expansion is a testament to the success of this approach, according to Forbes.

Retail is, by essence, local