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Kohl’s Corp., filling a significant “white space” in its assortment, has started rolling out Babies “R” Us shops inside its stores.

“So far we’ve opened Babies ‘R’ Us in two stores, but we will have Babies ‘R’ in 200 locations by the end of September,” Nick Jones, Kohl’s chief merchandising officer, told WWD on Wednesday. He said Babies “R” Us is also being sold on kohls.com, and after September, a Babies “R” Us registry will be offered. On Wednesday, Babies “R” Us departments opened at Kohl’s in Brookfield, Wis., and Woodland Park, N.J.

Asked if Babies “R” Us departments could wind up in more Kohl’s stores, Jones said, “We will see how it goes.” Kohl’s operates about 1,100 stores.

The strategy reflects the bigger-picture changes at Kohl’s, which has intensified efforts to reverse declining sales trends and strengthen its appeal to the whole family. “We have identified some really key growth initiatives relevant to existing and to new customers,” said Jones.

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In 2023, Kohl’s net sales decreased 3.4 percent to $16.6 billion as comparable sales declined 4.7 percent. But the company is looking to add another $2 billion in sales volume over several years through brand additions and assortment changes, including an emphasis on dresses.

The Menomonee Falls, Wis.-based chain has established dress shops in 700 of its locations and on kohls.com. Merchants have been shopping the market for brand names to augment what’s been an overreliance on proprietary labels, and the assortment now displays a better balance of styles.

Last March, Kohl’s unveiled a revamped home assortment marked by more emphasis on wall art, botanicals, storage, frames, glass, ceramics, gifting and impulse items, as well as the introduction of the pet supply and lighting categories to the selling floor for the first time.

Beauty is also a major component in Kohl’s efforts to boost sales with Sephora shops-in-shop in more than 1,000 Kohl’s locations.

The Babies “R” Us departments will display thousands of products new to the store across 90 brands selling baby gear, activity, safety, bath, furniture and more. They will range from 1,200 to 2,500 square feet in size, with an average size of 1,500 square feet.

“We’re not taking anything out of the store,” to install Babies “R” Us, said Jones. “We’ve worked hard to improve the productivity and the inventory level. From a space perspective, we have the capacity.”

Among the brands being carried are Baby Björn, Halo, Maxi Cosi, Safety 1st, Fisher-Price, Itzy Ritzy, Burt’s Bees, Frida Baby, Hello Bello, Johnson’s Baby, DaVinci, Storkcraft, Delta Children, Sealy, Dr. Brown’s, EZPZ and Munchkin.

Adjacent to Babies “R” Us are other baby brands sold by Kohl’s, including Nike baby essentials, Little Co. by Lauren Conrad, Huggies and Just Born.

WHP Global, a New York-based brand acquisition and management firm, owns the Babies “R” Us brand. “It’s a tight partnership,” Jones said, adding that his team works closely with WHP on the assortment and look and feel of the Babies “R” Us shops, and that Kohl’s owns the Babies “R” Us inventory, similar to how Kohl’s operates with Sephora.

Also adjacent to the Babies “R” Us shops, Kohl’s is introducing the Motherhood Maternity dresses, tops, bottoms, sleepwear and intimates. Motherhood Maternity is rebranding as Motherhood with a sleek new logo, new manufacturers for its fashion and intimates, and the Kohl’s deal. Marquee Brands owns the Motherhood intellectual property.

Babies

Babies “R” Us at Kohl’s. Courtesy image