Sephora to take over cosmetics in Kohl's stores

Sephora will be replacing all cosmetics areas at Kohl's with 2,500-square-foot shops, starting with 200 locations late next year.

The move is similar to one made a few weeks ago by Target and Ulta Beauty.

The Sephora mini stores will expand to at least 850 Kohl's stores by 2023. The Sephora's online beauty experience will launch on Kohls.com in the fall of 2021.

The partnership announced Tuesday, stands to benefit both retailers as the coronavirus pandemic upends shopping habits. Kohl's, based in Menomonee Falls, Wis., has struggled during the pandemic and is looking to draw new and younger customers. Cosmetics chains have been hurt as people consolidate trips to stores to lower their risk exposure.

"It's an extraordinary time of change, and I am thrilled to partner with Sephora, a brand that shares our values and our passion for innovation and reinvention," said Michelle Gass, Kohl's chief executive, in a statement.

Minneapolis-based Target will locate Ulta Beauty mini shops in 100 of the retailer's stores by the end of next year and more in the future. Analysts said the Ulta partnership should allow for the beauty business to grow in line with more successful Target departments.

The Sephora space in Kohl's will be located at the front of stores.

The 10-year deal with Kohl's appears to upend Sephora's 14-year exclusive relationship with J.C. Penney, which filed for Chapter 11 bankruptcy protection in May.

J.C. Penney will emerge from bankruptcy after closing about a third of its stores.