Kohl’s and WHP Global Announce New Strategic Partnership for Babies“R”Us
- Partnership with WHP Global to offer Babies“R”Us products at Kohl’s.
- First Babies“R”Us shops to open in August, expanding to 200 stores by fall 2024.
- Customers can shop baby products on Kohls.com and use Babies“R”Us at Kohl’s registry.
- Kohl’s CEO aims to optimize assortment and establish Kohl’s as a family-focused brand.
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Insights
The collaboration between Kohl's and WHP Global to introduce Babies"R”Us shops within Kohl's stores represents a strategic move to attract a demographic of younger families. From a market research perspective, this initiative taps into the lucrative baby products market, which is known for its resilience even during economic downturns. The choice to dedicate 750 to 2,500 square feet of retail space for these products is a significant investment, indicating Kohl's commitment to becoming a one-stop-shop for family needs.
By leveraging the Babies"R”Us brand, Kohl's is aiming to capitalize on the brand's established reputation in the baby gear category. This move could lead to increased foot traffic and potentially higher sales volumes, as the baby registry service may lock in customers' loyalty early on in their family life cycle. The integration of this new category alongside Kohl's existing baby apparel offerings could provide a seamless shopping experience, encouraging customers to make additional purchases.
The timing of the rollout, with the first shops opening in August and a broader expansion planned for fall 2024, is also strategic as it aligns with key shopping periods for families preparing for back-to-school and holiday seasons. However, the success of this partnership will depend on effective marketing and the seamless integration of the Babies"R”Us brand into the Kohl's shopping environment.
From a financial standpoint, the partnership between Kohl's and WHP Global could potentially enhance Kohl's revenue stream and diversify its product offerings. The introduction of Babies"R”Us shops within Kohl's stores is likely to incur initial setup costs, but if successful, could result in a new and stable source of income. The baby product market typically has higher margins compared to other retail sectors and the addition of new family-favorite brands could improve Kohl's competitive edge.
It is important to monitor how this strategic move will impact Kohl's financials in the coming quarters, particularly in terms of same-store sales growth and online sales performance. The exclusive online registry service could also drive online traffic and sales, which are increasingly important metrics in the retail industry. Investors should look for evidence of customer acquisition and retention as indicators of the partnership's success. The ability to earn and redeem Kohl's Cash on Babies"R”Us purchases may further incentivize customer spending and loyalty.
However, investors should be cautious about the potential risks, such as the execution risk of integrating a new brand within the existing stores and the competitive pressure from other established players in the baby products market. The long-term success of this partnership will hinge on Kohl's ability to differentiate its offering and deliver a compelling value proposition to its customers.
The retail landscape is increasingly competitive and Kohl's partnership with WHP Global represents a strategic effort to differentiate itself from other department stores and online retailers. The decision to incorporate Babies"R”Us shops into Kohl's stores is an example of experiential retailing, where creating an in-store experience becomes a key driver for customer engagement and sales.
The retail industry has seen a trend towards specialized in-store experiences as a way to combat the convenience of online shopping. By offering a dedicated space for baby products, Kohl's is not only expanding its product assortment but also enhancing the in-store experience for customers. This strategy could lead to increased customer dwell time and cross-selling opportunities.
Furthermore, the exclusive partnership for the Babies"R”Us registry positions Kohl's as a primary destination for baby-related purchases. The success of this strategy will depend on the execution of in-store merchandising, staff training and the integration of online and offline customer experiences. The ability to test and try products in-store before purchasing is a competitive advantage that online-only retailers cannot easily replicate.
Overall, the partnership with Babies"R”Us is a bold move that reflects Kohl's adaptive strategy in the face of changing consumer behaviors and the evolving retail environment. The effectiveness of this strategy will be a key factor to watch in the coming years as Kohl's seeks to strengthen its position in the retail market.
- Kohl’s will offer customers a wide array of products from top brands under the Babies“R”Us banner
- Partnership will help Kohl’s reach more new customers, including younger families
Rendering of Babies“R”Us shops inside Kohl's (Photo: Business Wire)
“Evolving our assortment and bringing more relevant product to the millions of customers we serve is a core focus as we continue to deliver on Kohl’s broader growth strategy,” said Tom Kingsbury, Kohl’s chief executive officer. “We see significant opportunity in the baby gear category, and partnering with Babies“R”Us is another example of how we are finding new ways to optimize our assortment and further establish Kohl’s as the go-to brand for families.”
Welcoming New Customers to Kohl’s
The new Babies“R”Us experience will introduce more new customers to Kohl’s, including younger customers who will be choosing Kohl’s for the first time. Becoming a trusted destination for a milestone moment is a natural introduction for even more families to enjoy everything Kohl’s has to offer - including Sephora at Kohl’s, apparel for every age and the company’s newly refreshed home department. Kohl’s has proudly served families for more than 60 years and sees this newest partnership as another opportunity to create new, loyal relationships with the next generation of families.
Kohl’s Will Have Everything Families Need for Their Little Ones
The Babies“R”Us shops inside Kohl's will range from 750 - 2,500 square feet of dedicated space inclusive of baby gear, activity, bath, furniture, feeding, and safety products. This space will complement Kohl’s existing assortment of baby apparel which will be adjacent to the new offerings, creating a comprehensive baby shop for customers. The shops will make it easy for customers to test and try products and stock up on everything they need for their little ones. In addition to the great brands Kohl’s currently offers including Graco, Chicco, Boppy, Skip Hop, Delta Children, Fisher-Price, and Carter’s, the retailer will add many new family-favorite brands that will make Kohl’s the destination for the baby category.
In addition to offering an expanded assortment of products on Kohls.com, Kohl’s will become the exclusive retailer for the Babies“R”Us at Kohl’s registry online, bringing a wide array of baby gifting options to family and friends across the country. Kohl’s Rewards members will earn rewards on every Babies“R”Us purchase both in-store and online, as well as earn and redeem Kohl's Cash on all merchandise, during designated Kohl's Cash events throughout the year.
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believes,” “anticipates,” “plans,” “may,” “intends,” “will,” “should,” “expects" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s then current views and assumptions and, as a result, are subject to certain risks and uncertainties, which could cause the Company’s actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company’s filings with the SEC. Forward-looking statements relate to the date initially made, and Kohl’s undertakes no obligation to update them.
About Kohl’s
Kohl’s (NYSE: KSS) is a leading omnichannel retailer. With more than 1,100 stores in 49 states and the online convenience of Kohls.com and the Kohl's App, Kohl's offers amazing national and private brands at incredible savings for families nationwide. Kohl’s is committed to progress in its diversity, equity and inclusion strategy, and the company's environmental, social and corporate governance (ESG) stewardship. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.
About Babies“R”Us
For over 30 years, Babies"R"Us has been known as the most trusted authority on parenthood. Millions of new and expecting parents, grandparents and caregivers around the world rely on Babies"R"Us as a one-stop-shop for all things baby, offering for the highest quality products, information and assistance, and a budding community to ensure that every parent can feel prepared and supported. Today, the Babies"R"Us brand can be found in over 20 countries with digital sites and more than 100 branded and independent stores. For more information and updates, follow @BabiesRUs across social and visit www.babiesrus.com.
About WHP Global
WHP Global is a leading
View source version on businesswire.com: https://www.businesswire.com/news/home/20240312522172/en/
Media Contacts
Jackie Judkins, (262) 309-2474, jacquelyn.judkins@kohls.com
Jaime Cassavechia, (646) 701-7041, jcassavechia@whp-global.com
Source: Kohl’s
FAQ
What is the partnership between Kohl’s and WHP Global about?
When will the first Babies“R”Us shops open in Kohl’s?
How many stores are planned to have Babies“R”Us shops by fall 2024?
Can customers shop baby products online?
What benefits do Kohl’s Rewards members get on Babies“R”Us purchases?
