What: Kohl's CEO Tom Kingsbury discusses the success of the Sephora partnership and broader retail revamp strategies at Shoptalk.

Why it is important: The Sephora shop-in-shops at Kohl's attract a new, younger, and more diverse customer base, contributing significantly to the department store's growth. This partnership, along with other initiatives like small-format stores and improved inventory management, signifies a strategic pivot towards catering to trend-oriented consumers and revitalizing Kohl's shopping experience.

At Shoptalk, Kohl's CEO Tom Kingsbury highlighted the impact of the Sephora partnership on attracting new customers and driving sales growth, with 40% of Sephora shoppers at Kohl's being new to the store. Sephora at Kohl's generated sales exceeding USD 1.4 billion in 2023, with projections to surpass USD 2 billion by 2025. The partnership has led to the introduction of small-format Sephora shops and improved inventory management at Kohl's. Kingsbury's strategy focuses on offering trendy merchandise, fresh inventory, and engaging store presentations to appeal to a younger demographic. Initiatives like expanding the home assortment and introducing Babies R Us shop-in-shops further demonstrate Kohl's commitment to revitalizing its retail experience and product offerings.

Sephora deal ‘a real coup’ for Kohl’s, CEO says