Retail

Checking in with shop-in-shops

The concepts are bringing in new demographics and boosting retailers’ loyalty programs
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Kohl's

· 3 min read

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Retailers have been setting up shop inside other shops for a while. Now, we’re taking inventory to see how some of the most noteworthy shop-in-shop partnerships are going.

Tween dream: This week, Claire’s and Walmart built on their four-year partnership by expanding Claire’s accessories and jewelry to 1,200+ more Walmart locations. The products are now sold in 2,500+ stores and 360+ shop-in-shops.

  • The move continues to establish Walmart as a “fashion destination,” Michelle Gill, Walmart’s VP of jewelry and accessories, said in a statement.
  • Walmart said Claire’s was its top jewelry and accessories vendor last year.

Beauty mark: JCPenney said this week it plans to take its JCPenney Beauty concept nationwide to 600 stores by spring 2023, with BIPOC-founded beauty brand thirteen lune accounting for 20% of the assortment. With its Sephora shop-in-shop partnership ending this year, JCPenney began testing the shops at 10 locations last fall to fill the gap.

Speaking of Sephora, Kohl’s said last month it aims to open Sephora shop-in-shops across all 1,165 of its stores. The 2,500-square-foot shops will be in 600 Kohl’s by year’s end.

  • Kohl’s CEO Michelle Gass said the partnership has brought in a “new, younger and more diverse” audience to the retailer.
  • One million Kohl’s shoppers joined Sephora’s VIP loyalty program, per The New York Times.
  • At stores with shop-in-shops, Kohl’s has seen mid- to high-single-digit-percent sales lifts compared to Sephora-less stores. Kohl’s anticipates that by 2025, the concept will reach $2 billion in sales.

Meanwhile, Sephora competitor Ulta’s shop-in-shops are also growing. On its Q2 earnings call last month, Ulta president Dave Kimbell said the beauty retailer opened 59 Ulta Beauty at Target shops in the quarter, bringing the total to 186 locations since rolling out in August 2021.

  • The two have 135+ million members, between their respective Target Circle and Ultamate Rewards programs, and Target reported that 1.5 million shoppers had linked their accounts between the two.

Toying around: The Toys ‘R’ Us and Macy’s shop-in-shop partnership seems to be going well, too. In its Q2 earnings presentation last month, Macy’s said toy sales tripled YoY, while 87% of Toys ‘R’ Us customers also shopped across other Macy’s categories. By October 15, all Macy’s locations will add Toys ‘R’ Us-branded shops, which will, apparently, all feature life-size Geoffreys.

Stay up to date on the retail industry

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