Kohl’s Corp. is expanding its “shop-in-shop” partnership with Babies R Us. The department store chain has launched a new baby registry on its ecommerce site and mobile app, allowing expectant parents to build and share gift lists online.

Through the new Babies R Us at Kohl’s Baby Registry, customers can choose from over 2,000 curated items, including baby clothes, furniture and bath essentials, as well as products from Kohl’s broader merchandise, the retailer announced.

Kohl’s ranks No. 23 in the Top 1000 Database, Digital Commerce 360’s ranking of the largest North American online retailers. Digital Commerce 360 categorizes Kohl’s as an Apparel & Accessories retailer.

Online sales at Top 1000 baby gear retailers in the database’s Specialty category were down 16.6% year over year in 2023 to $64.43 million. That decline occurred as retailers including Bed Bath & Beyond, which owned buybuy Baby, and Toys R Us, which owned Babies R Us, filed for bankruptcy. In both cases, these retail brands have since been purchased by new owners.

Baby gear web sales by Top 1000 retailers

The digital expansion builds on Kohl’s existing partnership with WHP Global, the parent company of Babies R Us. Earlier this year, Kohl’s introduced Babies R Us shop-in-shop sections in 200 stores, offering dedicated spaces for baby products alongside its existing selection.

“In addition to these stores, Kohl’s customers can shop an expanded assortment of baby brands through the Kohl’s app and website,” said Taylor Cygan, a spokesperson for Kohl’s, in an email to Digital Commerce 360.

Babies R Us baby registry’s role in attracting customers for Kohl’s

WHP Global, a global brand management firm, acquired Toys R Us and Babies R Us in 2021 after the retailers had filed for bankruptcy.

Kohl’s said it sees the partnership as a way to attract new customers, particularly younger shoppers, and build loyalty among growing families.

All 200 Babies R Us shop-in-shops are now open, according to Cygan. The sections, ranging from 700 to 2,500 square feet, feature a variety of baby products and brands such as Baby Bjorn, Burt’s Bees, Graco, and Fisher-Price, located next to Kohl’s baby and kids’ departments.

So far, baby gear, including car seats and strollers, is the top-performing category, followed by baby furniture, Kohl’s CEO Tom Kingsbury said during the company’s Q2 earnings call. He also noted that Kohl’s has introduced maternity clothing from Motherhood, a direct-to-consumer brand, now exclusive to Kohl’s stores.

“In addition to baby gear and maternity, we will also see a halo opportunity to grow sales of our infant and newborn apparel,” Kingsbury said.

How the Kohl’s-Babies R Us registry works

The new baby registry is a key part of Kohl’s omnichannel strategy, integrating both online and in-store shopping.

Registry items can be shipped directly to the registry creator, sent to a selected address, or picked up in-store. Shoppers can also purchase items in-store and have them marked off the registry by scanning a unique QR code at checkout.

Once parents set up a registry account, they can confirm shipping details, track the baby’s due date, create a welcome message, and start building their gift list.

The registry also provides product suggestions to help users find essential baby items, with options to sort by category and price. New parents can also access product checklists on Kohls.com for inspiration, the retailer said.

As for perks, registry creators can receive a 15% discount on remaining qualifying baby items, redeemable in-store or online. Shoppers can also earn and redeem Kohl’s Cash during promotional periods, while Kohl’s Rewards members continue to earn points on registry purchases.

To mark the launch, Kohl’s said it is offering a free welcome gift box for parents who create a registry this fall, available while supplies last.

Success with Sephora shop-in-shop

Kohl’s partnership with Babies R Us follows the retailer’s success with its Sephora shop-in-shop initiative, launched in 2021.

As of August, Sephora is in 1,050 Kohl’s locations, including 140 additions this year, Kingsbury said. Kohl’s operates more than 1,100 stores across 49 states.

“Our partnership with Sephora has been incredibly successful,” Kingsbury told investors during the Aug. 28 earnings call. “Together, we have acquired millions of new customers and gained significant market share within the industry.”

Sephora at Kohl’s contributed to strong results in Kohl’s second fiscal quarter, which ended Aug. 3. Total beauty sales were up about 45%, according to Kingsbury. He said digital beauty sales also saw solid growth, though he did not provide specific figures.

Sephora at Kohl’s sales topped $1.4 billion in 2023. Kohl’s said it is now on track to exceed its $2 billion sales target by 2025.

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