Already, J.C. Penney has launched a test of a mini concept store with the opening of the Sephora Collection Shop (containing only Sephora-branded products) inside a J.C. Penney store in Sault Ste. The new deal comes on the heels of Target and Ulta Beautys new agreement to put Ulta shops in Target stores. Our associates continue to execute against our growth strategies, resulting in success across several areas: new brand acquisition, increased Ulta Beauty brand awareness, rapid growth in our loyalty program, improving supply chain performance and robust e-commerce growth., By signing up to receive our newsletter, you agree to our, Webinar The two retailers quickly reached an out-of-court settlement after Sephora disputed the claim. Kohls and Sephora have signed a long-term partnership to put shops in 200 Kohls stores in fall 2021 as the beauty retailer phases out its longtime agreement with J.C. Penney. The free newsletter covering the top industry headlines. Opinions expressed by Forbes Contributors are their own. JCPenney wasnt alone in having a shop-in-shop arrangement Macys has had a partnership with Luxottica since 2009 to operate Sunglass Hut locations within its department stores. Tail-Lite 2022 Fortune Media IP Limited. Macys is also, taking some of the good we are learning from Bluemercury and putting it into the fabric of Macys, Hoguet said on the conference call. The group includes brands from Landing Internationals roster of BIPOC-owned brands including Kmoni Cosmetics and Everyday Humans. Gass also forged a relationship with Amazon that started out slow in 2017 with 100 stores in Chicago and Los Angeles accepting Amazon returns. Below is the full list of Thirteen Lune brands entering JCPenney Beauty: Afropick Comparable sales rose an impressive 11.8%. The move also helps Schwan make more efficient deliveries in an increasingly crowded marketplace for at-home food delivery. The strategy hinges on finally developing a sizable beauty business, essential for drumming up store traffic and winning the younger shoppers Kohls needs to survive. Mora Cosmetics As department stores pursue new avenues, they should keep in mind that beauty is not a silver bullet. By partnering with Sephora, this will quickly help Kohls become a leading player and destination in the beauty industry, Gass told Fortune. Ulta plans to expand rapidly. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. A full store is typically 2,000 square feet, while the Macys shops run around 1,000 square feet. As category players extend lead times and amass inventory to manage delays, they're also building sourcing relationships beyond China and Vietnam. Macys expansion plans include an additional 24 bluemercury stores in 2016 plus 18 bluemercury shops within Macys stores. She has chronicled the stark changes in grocery, malls, e-commerce, major bankruptcies and local retail entrepreneurs. And it will allow Kohls, which has 1,100 stores in all, to better compete with its strip-mall rivals Ulta Beauty and Target, which announced a similar arrangement only three weeks ago. But these types of partnerships have become less popular in recent years as the popularity of department stores has faded. Currently there are 120 Bluemercury freestanding stores, plus about 20 shops in Macys,Barry Beck, co-founder of Bluemercury told Retail Dive. Traditionally, when you were a designer, when you were a brand, you wanted to be in a department store, because it gave you exposureeven these direct-to-consumer brands dont want to partner with department stores.. While we understand thatJCPenneyhas put itself in a tough position in recent years, this is a very unfortunate development that we hope to resolve quickly. Clootrack Expands Access to Customer Experience Data with Snowflake Marketplace, From Clootrack Software Labs Private Limited, 47% of consumers say they unsubscribe from retailers if bombarded with promotional messages: O, Ketch Releases Groundbreaking Study on Consumer Attitudes Towards Data Privacy and Protection, Extensiv Launches Network Manager Enabling 3PLs to Build Collaborative Distributed Fulfillment, Not only is Ulta expanding, its sales are on fire. By Wishtrend Is It Better To Lease Or Buy A Car In Summer 2022? As a small, Black-owned business, the fact that we have the opportunity to launch with JCPenney and Thirteen Lune is thrilling because the focus is on inclusivity is directly tied to our brand values, said Evonna Kuehner, the founder of skin-care brand Anov. At a prototype store in Columbus, Ohio, the department store is testing an Estee Lauder prototype shop that offers a full assortment of LOreal-owned Urban Decay products, according to local Columbus Business First. Moreover, to delve deeper into smaller urban and more rural stores, J.C. Penney is working with Sephora to develop and test new smaller prototypes. Switch2Pure When Beauty All Rights Reserved, This is a BETA experience. Joanna Vargas It was getting harder for department stores to convinces places like Sephora that it was worth it for them to open boutiques within department stores in order to gain access to valuable new customers. Subscribe to the Retail Dive free daily newsletter, Subscribe to Retail Dive for top news, trends & analysis. Follow this author to improve your content experience. Consumers wanted new products and they did not want to deal with department store beauty advisors who were too aggressive and oversold them. Our associates continue to execute against our growth strategies, resulting in success across several areas: new brand acquisition, increased Ulta Beauty brand awareness, rapid growth in our loyalty program, improving supply chain performance and robust e-commerce growth.. When Sephora announced in 2006 that it would start opening boutiques in JCPenney stores, Sephora had just 120 stores in the U.S., while JCPenney had roughly 1,000, so the department store chain was helping Sephora reach customers where it had no physical presence. In January, Nordstrom introduced beauty outposts featuring natural beauty products in 46 locations nationwide, with plans for more. Kohls will begin opening Sephora shops within its stores in 2021, the companies announced on Dec. 1, 2020. Here are six names that could pop up, Jerry Jones and Jimmy Johnson, the Cowboys family feud that never ends, Rangers send reliever Matt Bush to Milwaukee for LHP Antoine Kelly, infielder Mark Mathias. In 2015 it increased square footage 9.5%, opening 77 stores to end the year with 874 units. Candidly,Ellison said on the call, we are blown away by the early results. The company declined to provide additional comment. A sales uptick of 24.2% in its fiscal third quarter drove record sales and earnings performance, said Ulta CEO Mary Dillon in a statement. That was before the department store chain filed for bankruptcy on May 15. The New York area is an interesting market to observe the competitive dynamic unfolding in the beauty business. Kohls shares rose 15% Tuesday morning on the news. Not only is Ulta expanding, its sales are on fire. Khloe Kardashian promotes Kardashian Beauty at ULTA on Thursday, April 2, 2015, in Los Angeles. [+] (Photo by Rich Fury/Invision/AP). In an email dated April 26 and included in court filings, Sephora CEO Jean-Andr Rougeot said to JCPenney CEO Jill Soltau that, Under any scenario, (JCP bankruptcy or not)we can both see that SiJCP is at the end of the road. Gloryscent Vaycay FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. A once derided beauty decision made by J.C. Penney just over 10 years ago has turned into its lucky charm today:Sephora outposts in its stores are now heralded as the most profitable part of the floor and are a driving force behind the retailers growth strategy. As JCPenney winds down its partnership with Sephora, the retailer is launching its new beauty section this fall with partners and a wide range of indie and inclusive brands. Sephora has 500 U.S. stores and said theres very limited overlap between the two store networks. On Thursday, the retailer will announce that over 170 brands will be included in JCPenney Beauty, its new in-store and online beauty shopping section that officially launches in October in 10 select stores and online. JCPenney doesnt break out how many sales the Sephora shop-in-shops generate, but Soltau said in an earnings call at the beginning of 2019, that like our apparel businesses, beauty is very important to us. But shop-in-shops have also been helpful in a few other regards. We look forward to unveiling this new concept which will be enhanced by our salon offerings to provide an improved beauty experience. The partnership will accelerate Kohls growth and reimagine our future for the next era of retail, she said. While consumer spending on apparel is expected to continue to diminish as consumers spend more on healthcare, entertainment, dining out, recreation and electronics, beauty is one of the few consumer product categories with growth potential,according to a recent Morgan Stanley research note. Sephora also operates a strong ecommerce business. Rent the Runway continues to forge its profitability path by diversifying beyond fashion rentals. In January 2016, Mary Dillon, CEO of Ulta Beauty was recognized as a Power Player by the National Retail Federation Foundation. In court papers filed Friday and Monday, JCPenney filed a temporary restraining order to prevent Sephora from shutting down its boutiques within JCPenney stores. As J.C. Penney continues to expand its longstanding partnership with Sephora, in an effort to redirect shopper traffic back to its stores and attract younger shoppers, others are taking note. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell My Personal Information| Ad Choices Prados Beauty So it was the freedom to roam the store, try the product that captivated them, as well as showcase new, younger product ranges that enticed them.. Its a big win for Kohls CEO Michelle Gass, who has been working to elevate Kohls beauty business for years. Visha Skincare. To curate a portion of its brand selection, JCPenney relied on B2B beauty marketplace Landing International and inclusive beauty e-tailer Thirteen Lune. While department stores have successful private label in nearly all other categories, beauty is different, said Mager, who creates beauty products for a range of specialty retailers including Charming Charlie and Banana Republic. Winning in beauty is a key part of that, said Gass. Competition in the prestige beauty arena is only expected to heat up. The company offered the beauty and wellness experience I wished every store offered back in the day, said Niambi Cacchioli, the founder of Pholk. In 2013 it represented 10% of J.C. Penneys net sales, in 2014 it was 11% and in 2015 it grew to 12%. Maria Halkias has covered the retail scene for The Dallas Morning News since 1993. Sales for fiscal 2015 were $3.9 Billion, up 21% over 2014. Since then, JCPenneys brick-and-mortar footprint has shrunk, and has just under 850 stores in the U.S. Hanskin Keep Cool. All rights reserved. Sephora has every confidence in the future of this collaboration and the unique experiences it will bring to consumers across the U.S.. The retailer worked with Landing International to curate a group of 17 minority-owned indie brands from the platform to be sold as part of the lineup. Confused By Clean, Natural Beauty? The company also enjoys a robust on-line business. Liha Beauty Demonstrating its ability to attract new wanted vendors to its franchise, this week Ulta launched Drybar in 400 of its stores.