Kohl’s turns to Babies R Us as Sephora falters

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This month Kohl’s is expanding its tie-up with Babies R Us, adding the brand’s shop-in-shops to 56 more stores and introducing an exclusive collection of bibs, blankets and crib sheets with coordinated designs. The partnership launched in 2024 at about 200 Kohl’s locations.
In the fall, all stores will begin offering a selection of gifting options for people with babies, including more items under $25, the department store said last week. Kohl’s is also bringing in Millie Moon diapers, Hallmark gift sets and seasonal stroller toys and books.
The biggest expansion of Kohl’s Babies R Us concessions is in California, where 25 more stores will open Babies R Us spaces, and Texas, where 20 will. One or two stores in Arizona, Colorado, Idaho, Illinois, Nebraska, New Jersey, New York, Oregon and Pennsylvania will also get the shop-in-shops.
This move comes as Sephora shops, long touted as dependable traffic drivers to Kohl’s, have seen sales dip this year, down 4% in Q2 after previously dropping by low-single-digits in Q1. Sephora at Kohl’s has been contributing about 10% of the department store’s top line, according to Fitch Ratings research.
Traffic to Kohl’s remains challenged, though declines have slowed. Visits to Kohl’s stores fell 7.7% in Q1 and 1.4% in Q2, with same-store visits up in June and July, the first back-to-back monthly gains in about two years, according to Placer.ai.

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