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Sephora will open 850 stores in Kohl's department stores



Sephora stores will open in department stores of about 115 square meters.
Sephora - Photogenica

Perfume and cosmetics giant Sephora has agreed to partner with the American department store chain Kohl's. Under the agreement, Sephora's mini-brand stores will open in department store areas, offering more than 100 cosmetic brands, including those exclusively on the market. 

Sephora will open approximately 200 outlets in partnership with Kohl's in nine months. By 2023, the Sephora retail chain will grow to 850 stores in this format. In 2021 the online perfume retailer's showcase will also appear on Kohl's online store. 

According to CNBC, a ten-year partnership's announcement followed a few weeks after it became known about Target's plans to open hundreds of Ulta-branded cosmetics stores on its premises. 

Kohl's notes that today's U.S. perfume and cosmetics market seems "huge," with prospects for growth in the coming years. At the same time, the company believes that it is not well-represented in this segment. Following news of the partnership with Sephora, the chain's stock went up 14% in price on the stock exchange. 

Sephora stores will open in stores around 115 square meters in size, offering additional services, including the classic store format. Sephora will receive an extra logotype sign next to Kohl's on the department stores' main facades. The retailer's mini outlets will have a separate entrance. 

In the third quarter of 2020, sales of prestigious cosmetics brands in U.S. department stores fell 17 percent to $3.7 billion, while perfume sales increased. LVMH's Sephora brand has been growing and gaining new market share. 

Photo credit: Photogenica.

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