Babies R Us is coming back inside Kohl’s
After shutting its doors in 2018, Babies R Us is coming back.
WHP Global, which now owns the brand, struck a deal with Kohl’s to open 200 shops inside the department chain’s stores this year. Ten of those locations are set to open in Texas, including a shop within the Kohl’s store in Missouri City, Rosenburg, San Antonio, Brownsville, Harlingen, Keller, Lubbock, McAllen, Mission and Westchase.
The Babies R Us stores will range from 750 square feet to 2,500 square feet and carry furniture, baby gear and accessories. They will be near Kohl’s existing baby merchandise, expanding the host stores’ selection of such items. Customers can also peruse items on Kohl’s website and the company plans to create a baby registry.
The first stores are scheduled to open in August and all 200 are expected to be open by the holiday season.
In 2018, Babies R Us closed its stores after its parent company Toys R Us filed for bankruptcy in 2017. New York-based WHP Global acquired both brands in 2021 with plans to revive them.
A 20,000-square-foot Toys R Us store opened at the American Dream mall in New Jersey in 2021 and more than 400 smaller shops inside Macy’s stores debuted in 2022. WHP Global began opening flagship stores last year, with the first at Dallas Fort Worth International Airport through a deal with Duty Free Americas.
The firm is also pushing into Mexico. It opened Toys R Us stores there last year and is partnering with retailer El Puerto de Liverpool to open Babies R Us brick-and-mortar stores and launch an e-commerce platform.
Kohl’s executives said the move will help the company boost sales in the baby products category and attract new customers, particularly younger patrons who have not shopped at Kohl’s previously. The Wisconsin-based retailer said net sales fell 3.4% year-over-year in 2023 to $16.6 billion and it expects sales to decrease or increase 1% this year amid a challenging environment for department stores.
“This partnership provides a significant growth opportunity in a large category that has been displaced in recent years and builds on our existing assortment, while broadening our reach with younger customers,” Kohl’s CEO Tom Kingsbury said during a March earnings call with analysts.
The company entered into a similar arrangement with Sephora in 2020 and began adding 750-square-foot shops within its stores.
Existing customers liked the shops, which also helped lure new customers, Kohl’s said. Sales surpassed $1.4 billion in 2023 and the company said it expects to meet its goal of $2 billion in receipts by 2025.
Kohl’s Corp. shares closed Friday at $23.93, down more than 2% for the week.