Sephora’s Jean-André Rougeot on ‘making status magnificence extra accessible to extra folks’
Final week, news broke that Kohl’s and Sephora are accelerating their year-old partnership. After debuting Sephora shop-in-shops in Kohl’s in August 2021, the retailers are usually not solely sticking to their roadmap of including one other 250 shop-in-shops to their providing, but in addition making a smaller Sephora footprint within the remaining 300 Kohl’s shops. Kohl’s projected that Sephora at Kohl’s will develop to attain $2 billion in annual gross sales by 2025.
Regardless of broader financial uncertainty and Kohl’s own decreased quarterly sales, Sephora’s development at Kohl’s signifies that status magnificence remains to be very a lot in demand throughout retail.
“There may be seemingly a common demand for the standard and variety of merchandise and the premium buying expertise Sephora presents,” mentioned Jean-André Rougeot, Sephora Americas president and CEO. “[An] fascinating takeaway is that the manufacturers which are performing effectively at Sephora at Kohl’s are fairly just like these performing effectively at standalone Sephora shops. Manufacturers corresponding to Charlotte Tilbury, Nars and Fenty are doing exceptionally effectively, which tells us that the Sephora at Kohl’s shopper is sort of subtle of their magnificence purchases.”
Forward, Rougeot divulges the early successes of the Sephora and Kohl’s partnership, the highly effective mixture that status and comfort delivers, and his outlook for future development.
The enlargement information doesn’t come as a shock, given the early success of the Kohl’s partnership. However what have you ever realized about Sephora consumers?
“The response from consumers has solely reaffirmed what we believed to be true after we first set out on this journey with Kohl’s: Magnificence consumers throughout the nation are hungry for and obsessed with status magnificence at Sephora — the distinctive manufacturers, schooling and storytelling we provide — and so they need all that conveniently. Not solely have we been capable of attain new consumers — we’ve welcomed greater than 1 million new members to our Magnificence Insider group by way of Sephora at Kohl’s — however we have now additionally seen a dramatic uptick in shoppers who had been [formerly] buying with us much less ceaselessly. Over 750,000 shoppers are re-engaged in Magnificence Insider now that they will weave magnificence into their on a regular basis shopping for. This development is unprecedented for a well-established loyalty program and speaks to the ability of the match for Kohl’s and Sephora.”
How does this deal with Sephora’s imaginative and prescient for long-term development?
“This partnership has performed a essential half in enabling Sephora to achieve shoppers the place they’re. Within the span of 12 months, we have now dramatically expanded our attain by way of 600 new shops in 40 states, successfully making status magnificence extra accessible to extra folks than ever earlier than and doubling Sephora’s brick-and-mortar presence. And, as talked about, it’s not simply new prospects we’re reaching, but in addition people who had been buying much less because of comfort. We’re thrilled with what we’ve been capable of obtain to this point, however it’s really early days. Simply 400 shops debuted during the last eight weeks, bringing us to roughly 600 [stores], so these early outcomes are the tip of a really large magnificence iceberg.”
Do you assume this partnership has had broader implications for the Sephora enterprise and the manufacturers you carry?
“Our enterprise has remained extremely sturdy; Sephora achieved wonderful efficiency within the first half of 2022, rising at double digits in comparison with final 12 months and pre-Covid in 2019, with a powerful rebound in our retailer efficiency. As we transfer ahead with Kohl’s, our focus is on persevering with to seek out methods to make the Sephora at Kohl’s expertise much more built-in and impactful for consumers, making all essentially the most unbelievable points of buying at Sephora accessible to Sephora at Kohl’s consumers, as effectively. Our loyalty program is rising quickly, but in addition, we’re serving to bolster our manufacturers. They belief us with their development and, by approaching this journey, they’re gaining not solely large quantities of latest shoppers, but in addition new advertising and marketing lanes, new markets to develop and far more. This can be a game-changer for our status magnificence companions in all classes that can show to make Kohl’s a significant magnificence participant, corresponding to the dimensions of some well-established department shops.”
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