Dec 1 (Reuters) – French cosmetics retailer Sephora will open its shops at about 850 Kohl’s Corp KSS.N stores by 2023, as the U.S. department store operator doubles down on its beauty category.
Shares of Kohl’s were trading up 14% in early trading.
Beauty products have been among the most sought-after items during the COVID-19 pandemic, alongside athleisure apparel and home improvement items, as people largely staying at home spend more on premium skincare items.
The first 200 Sephora stores at Kohl’s locations would open in fall 2021 with Sephora becoming the exclusive beauty partner on the U.S. chain’s website, the companies said.
Sephora is owned by Louis Vuitton owner LVMH LVMH.PA and has 500 stores in the Americas.
Last month, Ulta Beauty Inc ULTA.O said it had signed a long-term deal to have its stores next to Target Corp’s TGT.N own beauty section.
Kohl’s last month had said it had its sight set on at least tripling its sales of beauty products, after seeing growth of nearly 40% over the past five years.
Kohl’s has also collaborated with Amazon.com Inc AMZN.O, WW International Inc WW.O and Planet Fitness Inc PLNT.N, offering services from the companies in its stores in a bid to boost store traffic.
J.C. Penney Co Inc, Sephora’s longtime partner, said its partnership with the beauty brand will continue until the end of its current agreement, which the Wall Street Journal has said is scheduled to wind down in 2023.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Shailesh Kuber)
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