Checkout was completed at a counter within the shop-in-shop in contrast to the Ulta in Target concept which utilized the standard Target checkout aisles. However, Kohl’s customers cannot redeem Kohl’s cash on Sephora at Kohl’s purchases, which could be a significant drawback for shoppers. Customers can earn both Kohl’s Rewards and Sephora Beauty Insider points, like the Ulta at Target concept. While Sephora experienced great success throughout the pandemic in their online sales, the brand’s mall-based stores were not suitable for essential contactless pickup options, which will be another plus that the partnership with Kohl’s can provide. Sephora at Kohl’s unlocks a highly covetable new footprint for Sephora to compete directly with Ulta at standalone centers vs. This approach could struggle to capture the attention of the Kohl’s consumer that is so accustomed to the steep sales/coupons that Kohl’s features almost year-round.Ī Strategic Footprint and Controlled Sephora Experience within Kohl’s The physical separation of the Sephora shop-in-shop mirrors the assortment’s price-positioning gap from Kohl’s traditionally discounted shopping experience. There are “Sephora Collection Under $20” and small “Clean Beauty Under $20” sections that will appeal to a more price-conscious shopper. While Ulta shops at Target carry an accessible assortment to match Target’s Good/Better price positioning, Sephora in Kohl’s leans more premium overall. Celebrity brands including Jennifer Lopez’s JLO Beauty and Rihanna’s Fenty makeup and skincare lines are featured, and about 125 prestige brands are available in total. Sephora Collection products comprise one side of the shop-in-shop perimeter. While the Ulta section at Target was laid out as an open concept, much like any other department, Sephora at Kohls is a walled off section, with only the front of the shop open to the Kohl’s store.Ī Premium Assortment with a Focus on Sephora’s Own Collection The shop-in-shop is located near the entrance – much like the Ulta in Target concept – and features haircare and skincare on one side, and makeup on the other. From the entrance to the parking lot, Sephora stands out with a dedicated entrance and a large Sephora sign displayed. Unlike the Ulta at Target collaboration, Sephora at Kohl’s feels a bit more like its own storefront – this makes the 2,500 square foot Sephora shop-in-shop prominent but less integrated with its surroundings. Sephora Benefits from Storefront Opportunity through Kohl’s One concern, however, is the “double dipping” reward points customers receive when shopping at the Ulta within Target locations as compared to standalone Ulta stores, which could ultimately dissuade customers from visiting Ulta stores in favor of the shop-in-shops. This feature is promoted at various points throughout the shop and is a great example of how retailers can use a robust digital platform to enhance their store experience. Customers earn both Target Circle and Ulta Ultimate rewards by easily scanning a QR code to link the accounts. Immediately upon entering the approximately 1,000 square foot shop-in-shop, guests are greeted with the message that Target and Ulta rewards programs are now linkable – a major perk when purchasing your Ulta must-haves at Target. The Ulta at Target mini shops are attractively executed and located adjacent to Target’s existing beauty section in store. Ulta Elevates Target’s Store Experience, Gaining Access to the Retailer’s Massive Customer Base Read on for our take on how these beauty partnerships offer significant benefits to the retail parties and their customers. The mass retailers recently launched these concepts across the US, with expansion plans already underway. Two strategic beauty partnerships recently opened their doors this summer – Ulta Beauty shop-in-shops at Target and the Sephora shop-in-shops at Kohl’s, both initially announced last fall. Retail partnerships work to combine the strengths of brands and retailers to create newness in familiar stores, promote brand awareness, and establish a unique and exciting customer experience.
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