Sephora and Kohl’s are on track to hit their goal of opening 850 shops by 2023.
This year, 400 new locations will open, bringing the total count to 600 by year-end.
In addition, six new brands will be added to the assortment: Murad, Clarins, Jack Black, Living Proof, Versace and Voluspa.
“The quick and vast rollout of Sephora at Kohl’s is testament to how much we believe in this partnership and making prestige beauty more accessible to people everywhere,” said Doug Howe, Kohl’s chief merchandising officer, in a statement. “We’re excited to grow and bring this elevated beauty experience to more of Kohl’s existing and new customers this year.”
While some industry reports have been mixed about the performance of the partnership thus far, Kohl’s chief executive officer Michelle Gass was optimistic during the company’s third-quarter earnings call last November. She noted that 25 percent of the shoppers of Sephora at Kohl’s are new to Kohl’s, and said they are younger and more diverse than the retailer’s core consumer base. In addition to driving “extraordinary growth,” to its beauty business, Gass said Kohl’s is seeing incremental mid-single-digit sales lift to overall store sales in the locations where it has launched.
Geographically, the locations cover coast-to-coast, including one in Anchorage, Alaska. California will have the most openings, with 46 planned. The Midwest will see an influx, as well, with 30 doors planned for Ohio, 26 doors in Illinois, 20 in Michigan and 19 in Indiana. There will be 26 in Texas, 18 in New York and 15 in New Jersey. Other states with openings in the double digits include Arizona, Colorado, Connecticut, Florida, Maryland, Minnesota, Missouri, Pennsylvania and Virginia.
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The announcement comes at a time when the Menomonee Falls, Wisc.-based has been embroiled in a hostile battle with investors for control of the business, rejecting two takeover bills and implementing a poison pill earlier this month. Kohl’s rejected a bid by Acacia Research Corp. to acquire 100 percent of its shares at $64 a share in cash, valuing the company at $9 billion and it is also believed that a $64 to $65 offer from Sycamore Partners was rejected.
Analysts said the bidding reflects growing interest in the retail sector, in particular what many see as the unrealized value of dot-com and retail real estate, as consumers return to stores in greater numbers.