E-commerce CRO

Kohl's Expands Its Baby Registry Offerings with Babies R Us Partnership

Kohl’s Corporation is reinforcing its position in the competitive retail landscape with a strategic expansion of its partnership with Babies R Us. This development includes the launch of a new baby registry on both its e-commerce site and mobile app, specifically designed for expectant parents looking to curate and share gift lists for their upcoming arrivals. This move not only catapults Kohl’s into a more prominent space within the baby goods market but also signals a fresh direction after facing challenges in its sales figures.

The newly introduced Babies R Us at Kohl’s Baby Registry features over 2,000 curated items. Expectant parents can now choose from a wide array of baby essentials, spanning categories such as clothing, furniture, and bath products. This includes well-known brands, enhancing the shopping experience with more choices. Kohl’s announcement showcases its ambition to attract a younger demographic, which often prioritizes convenience and variety when preparing for childbirth.

Significantly, Kohl’s ranks as the 23rd largest online retailer in North America, as per Digital Commerce 360. The brand is categorized under Apparel & Accessories, yet the partnership with Babies R Us illustrates a strategic diversification. Online sales within the specialty category for baby gear experienced a significant downturn of 16.6% in 2023, amounting to $64.43 million. This decline was influenced by the bankruptcy filings of other notable retailers like Bed Bath & Beyond, which owned buybuy Baby. However, Kohl’s sees the partnership not only as a way to counteract market trends but as a potential invitation for growth even in uncertain times.

The partnership builds on an earlier collaboration between Kohl’s and WHP Global, the parent company of Babies R Us, initiated in 2021 following the brand’s acquisition post-bankruptcy. As part of this collaboration, Kohl’s has rolled out Babies R Us shop-in-shop sections in 200 of its stores nationwide. Each section, varying from 700 to 2,500 square feet, showcases a range of baby products from recognized brands like Baby Bjorn and Fisher-Price. These physical spaces are juxtaposed to Kohl’s existing baby departments, creating a one-stop shopping experience.

In a statement, Taylor Cygan, a spokesperson for Kohl’s, emphasized the strategic importance of these expansions. “In addition to these stores, Kohl’s customers can shop an expanded assortment of baby brands through the Kohl’s app and website,” she noted. This approach aligns with the growing consumer trend towards omnichannel retail, encouraging customers to navigate seamlessly between online and in-store experiences.

As part of their commitment to enhancing customer loyalty, Kohl’s has introduced various features within the new baby registry. The items can be shipped directly to the registry creator or to selected addresses, with an option for in-store pick-up. Moreover, parents setting up a registry can confirm shipping details, track their baby’s due date, and receive tailored product suggestions. The user-friendly interface allows sorting by category and price, making the registry an appealing tool for busy expectant parents.

To incentivize registry creation, Kohl’s offers a 15% discount on remaining qualifying items, alongside promotions for Kohl’s Cash during specific periods. There is also a free welcome gift box available for those who create a registry this fall, adding a personal touch to the shopping experience. The integration of these incentives is crucial; not only does it attract new customers, but it also reinforces Kohl’s commitment to supporting families.

Kohl’s efforts in the baby market are consistent with its previous successes, notably the Sephora shop-in-shop initiative launched in 2021. This partnership has demonstrated that a focused product strategy can lead to significant market share gains. As reported by CEO Tom Kingsbury, Sephora at Kohl’s achieved $1.4 billion in sales for 2023, underscoring the effectiveness of the shop-in-shop model.

The revitalization of Babies R Us within Kohl’s represents an astute maneuver in adapting to changing market dynamics. With over 1,100 stores across the United States, Kohl’s is well-positioned to leverage its physical presence while enhancing its digital capabilities, thus catering to the evolving needs of modern consumers.

As the industry navigates through challenges regarding consumer spending and competition, Kohl’s innovative approach with the Babies R Us partnership could pave the way for future growth and prosperity in the retail sector.