Babies R Us is Back: Here’s Why Kohl’s is Betting on Babies to Drive its Turnaround
The retail landscape has undergone significant changes in recent years, with the rise of e-commerce and shifting consumer preferences leading to the demise of many traditional brick-and-mortar stores. However, some retailers are finding ways to adapt and thrive in this ever-evolving environment. Kohl’s, the American department store chain, is one such retailer that is making strategic moves to drive its turnaround, with a particular focus on the baby category.
Kohl’s recently announced its partnership with Babies R Us, bringing the beloved baby retailer back to the market after its closure in 2018. This move comes at a time when Kohl’s is looking to revamp its product offerings and attract new customers to its stores. By tapping into the lucrative baby market, Kohl’s is positioning itself to capitalize on the growing demand for baby products among millennial parents.
One of the key reasons why Kohl’s is betting on babies to drive its turnaround is the changing demographics of its customer base. Millennial parents, born between 1981 and 1996, are now the largest consumer demographic in the United States. This generation values convenience, affordability, and sustainability when making purchasing decisions, making them a prime target for retailers like Kohl’s.
Furthermore, the baby market is a lucrative one, with parents spending an average of $12,000 on baby products in their child’s first year alone. By offering a wide range of baby products, from clothing and accessories to gear and toys, Kohl’s aims to capture a share of this significant market and drive foot traffic to its stores.
In addition to the financial opportunity presented by the baby market, Kohl’s partnership with Babies R Us also aligns with the retailer’s broader strategic goals. By diversifying its product offerings and expanding into new categories like baby products, Kohl’s is looking to differentiate itself from competitors and create a unique shopping experience for its customers.
Moreover, Kohl’s omnichannel strategy, which integrates its physical stores with its online platform, plays a crucial role in driving its turnaround. Through its partnership with Babies R Us, Kohl’s can leverage the popularity of the baby retailer’s online platform to attract digital-savvy millennial parents and drive online sales.
Overall, Kohl’s decision to bet on babies to drive its turnaround is a strategic move that aligns with the retailer’s goal of adapting to changing consumer trends and revitalizing its business. By capitalizing on the growing demand for baby products and tapping into the millennial parent market, Kohl’s is positioning itself for long-term success in an increasingly competitive retail landscape.
