Kohl’s is integrating Babies “R” Us shops into its department stores, aiming to establish 200 locations by this fall. Babies “R” Us, which went out of business in 2018, recently opened a flagship store at the American Dream mall in New Jersey.
This partnership allows Kohl’s to expand its baby products selection from clothing to essentials like strollers, car seats, and cradles. With over 1,100 stores, mainly in suburban strip malls, Kohl’s hopes the Babies “R” Us shops will attract parents running errands.
This move follows a trend among retailers to cater to older first-time parents, who tend to have more disposable income. The trend of “inception retail,” or mini stores within stores, is becoming more popular as retailers look to enhance their offerings and compete with giants like Amazon.
For instance, Target has opened over 100 Ulta Beauty shops within its stores, and Kohl’s previously added mini Sephora stores, which generated $1.4 billion in sales. Kohl’s plans to open 140 more Sephora locations this year.
According to a poll, 86% of expecting mothers create baby registries, a higher percentage than in the past decade. This indicates a strong market for baby goods, reinforcing retailers’ strategies to expand their baby product lines.
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James Miller is a Senior Content Writer at McGruff.com. He has a background in investing and has spent most of his career in the financial industry. He can trace his family tree back to the California Gold Rush when his ancestors risked it all to make it big in the west. He feels like he's following in their footsteps as he strives to make sense of today's gold market.