Sephora, Jc Penney, Michael Bonetti discussed on Business Wars Daily


The beauty business can be pretty ugly. Consider the battle by department stores. Jc penney and kohl's for the affections of beauty brands sephora for the last fifteen years sephora has run stores within stores at jc penney. Those mini stores have been the most productive part of pennies credit. suisse analyst. Michael bonetti told industry publication retail dive. Naturally the last thing the struggling pennies wants to lose its golden goose especially as it attempts to emerge from bankruptcy after declaring chapter eleven protection in may but sephora hasn't been happy with its longtime partner and cast its longing i elsewhere in fact. Jc penney took sephora accord in may for attempting to leave at week reported the to came to what they say is an agreeable settlement that is sephora is honoring its commitment until the end of its contract in two thousand twenty three but the pair is still on the path to divorce in. The meantime sephora has made plans to move in with jc penney rival. Kohl's by twenty twenty three sephora and cold say there will be at least eight hundred. Fifty sephora stores within stores at kohl's nationwide retail dive because customers need to replenish makeup often in-store beauty departments help pulled in walk in traffic sephora. Could be a huge reason for customers especially younger ones to return to colds. Brick and mortar shops post pandemic. The move is particularly strategic now. Analysts say traditionally shoppers have purchased makeup. It mall based department stores but with malls dying beauty. Customers have fewer brick and mortar options. And they prefer one stop shopping. You know being able to buy makeup at the same store where you shop for clothes appliances and much more. Unlike jc penney cold stores are in suburban strip malls which will give sephora access to customers. It hasn't reached sephora. Stores tend to be an urban areas. Colds plans to make the partnership a big deal. The twenty five hundred square foot sephora departments will be placed prominently at the front of kohl's visible from outside and sometimes with their own entrances. The new colds tie up leaves. Jc penney out in the cold. The retailer is being sold. A mall landlords simon properties in brookfield asset management earlier. This month penny announced plans to start. Its own store within a store beauty concept to fill at sephora shaped holes. But that's not the only part of the streetfight worthy of a perfectly groomed raised eyebrow. The cold sephora partnership faces a much tougher competitor. Jc penney just last month targeted announced that it had successfully wooed ulta beauty to build stores within stores at target alta is of course a for his biggest rival so ken cole's compete with target by putting sephora up ulta. It certainly won't be easy during the pandemic colds share. Prices dropped almost thirty percent the company's now worth under six billion dollars according to cnbc in contrast target is booming. It's now worth about ninety billion dollars. Cnbc reports target plans to open about one hundred alta many stores nationally by the end of next year ultimately they plan to expand into hundreds of targets both target and kohl's are adding their respective beauty partners to their websites still the store within a store partnerships point out the existential facing strip mall department stores and that is post pandemic. How much in person shopping would we really do. Especially the younger women. Retailers are trying so hard to attract millennial gen z consumers. Were already used to quite a bit of online shopping. And the pandemic accelerated that trend. Furthermore with instagram and other online players pushing social commerce will any department store be able to woo these shoppers back inside. Nearly both kohl's and target believe they will time vaccine. We'll tell

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