Sephora has about 3,000 stores in 35 countries and about 46,000 employees. With a strong digital strategy, the beauty retailer remains heavily focused on brick-and-mortar stores for growth. The Financial Times reported that HSBC estimates the beauty retailer had €14.4 billion ($15.6 billion) in sales last year and generated €1.4 billion ($1.5 billion) in earnings before interest and taxes. 

The US is Sephora's biggest market, and they are the largest prestige beauty player with sales of $10 billion. The deal struck with Kohl's in 2021 to open Sephora locations in 1,000 of its stores provided a path to expand its footprint beyond city centers and the right to competitors with Ulta Beauty's front door.

Kohl’s partnership with Sephora continues to pick up traction, as sales exceeded $1.4 billion in 2023. At the end of 2023, the Sephora at Kohl's fleet had reached more than 900 stores. Based on the current trajectory, the retailer projects it will surpass the previously shared goal of $2 billion in sales by 2025. The momentum is fueled by growth experienced in both large and small-format shops.

“We are proud of the continued success of our partnership with Sephora,” said Nick Jones, Kohl’s Chief Merchandising and Digital Officer. “Not only are we well on our way to having a Sephora presence in every Kohl’s store across America, but we’re also seeing strong sales momentum from our current stores, and the experience is bringing new customers to Kohl’s. Over the past three years, Sephora at Kohl’s has become a beauty share leader, and our continued investment in bringing prestige beauty offerings to more stores this year demonstrates our steadfast belief in the power of our partnership.”

The strategy to make Sephora accessible to more beauty shoppers is not only resonating with existing Kohl customers, but it’s bringing in new customers who are shopping more frequently, fueling more than 90% total sales growth year-over-year.

By this summer, Sephora at Kohl’s will add approximately 140 new 750-square-foot small-format shops in 40 states. The curated merchandising approach in the smaller-format Sephora at Kohl’s shops displays products together by category rather than brand, creating a simplified shopping experience for customers. 

The addition of this year’s new locations brings the total Sephora at Kohl’s fleet to more than 1,000 stores and is the latest step in achieving a full Kohl’s chain rollout by 2025.