Kohl’s said Tuesday that it’s teaming up with the owner of Babies R Us to bring baby gear, furniture and more to approximately 200 of its stores across the country, reports CNBC. The department store chain struck a licensing deal with WHP Global, a brand management firm with a portfolio that includes Bonobos, Joe’s Jeans, and Anne Klein. The two companies didn’t disclose the terms of the agreement. Kohl’s said the first Babies R Us shops will open this August and expand to more stores in the fall.
The shops will range from 750 to 2,500 square feet, and will add more brands and merchandise to Kohl’s baby category. The new shops will be set up next to the baby merchandise that the retailer already carries, including clothes and items from Graco, Carter’s and Fisher-Price. Customers will also be able to shop an expanded assortment of baby products on Kohls.com and take advantage of the Babies“R”Us at Kohl’s registry to easily build and share gift lists.
Total Retail’s Take: Kohl’s is investing in more shop-in-shop partnerships with Babies R Us joining Sephora inside some of the department store’s locations. In 2023, Kohl’s focused heavily on expanding its Sephora at Kohl’s partnership to drive beauty sales growth. Kohl’s is betting on the Babies R Us brand to do the same in the baby category and beyond, bringing in new customers to its stores. Tom Kingsbury, Kohl’s CEO, said in a press release, “We see significant opportunity in the baby gear category, and partnering with Babies“R”Us is another example of how we’re finding new ways to optimize our assortment and further establish Kohl’s as the go-to brand for families.” Kohl’s is continuing to face immense pressure from investors for proof that its turnaround plan can push the business back towards profitability.
The partnership presents a significant opportunity for the beleaguered baby brand as well. Babies R Us closed its stores in 2021 after its parent company Toys R Us filed for bankruptcy. The brand was bought by WHP Global and has been on a comeback mission ever since to regain its position as parents’ go-to brand for all things baby. WHP Global has a similar shop-in-shop deal with Macy’s, which has opened Toys R Us shops inside of many of its stores.
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