Kohl’s is planning to expand its partnership with Sephora to all its stores and reach $2 billion in annual sales by 2025.
According to Kohl’s CEO Michelle Gass, Sephora shops attract younger, more diverse customers and drive traffic and incremental sales to the department store, and those with a Sephora perform better than those without, she said in a call to analysts.
With 400 opening this year and 250 in 2023, Sephora is in 600 Kohl’s locations and will be in 850 sometime next year. During the call, Gass also pointed out that the 200 Kohl’s stores where a Sephora shop opened in last year have maintained a high single-digit percent lift compared to the rest of the chain.
“Our game-changing partnership with Sephora continues to deliver on its promise of transforming Kohl’s into a leading beauty destination,” Gass said, calling the effort a “cornerstone” of its turnaround.
Kohl’s is the largest department store chain in the United States with over 1,100 stores and sales of over $18 billion. In addition to the stores in Kohl’s, Sephora has over 2,600 stores in 34 countries worldwide.