Kohl’s Expands In-Store Babies' R Us Partnership Amid Declining Sales
Kohl’s is expanding its in-store partnership with Babies’RUs, adding new shops to 56 locations across the U.S. as it seeks to attract budget-conscious customers amid declining sales and store traffic. The department store chain reported a 0.9% drop in comparable sales year-over-year for Q2 2026, alongside a 6.5% decline in operating income. Customer visits also fell by 1.4%, according to Placer.ai data. Kohl’s CEO Michael Bender noted that low- and middle-income shoppers are increasingly prioritizing value over brand names due to financial pressures. The expansion of the Babies’RUs partnership includes new products like strollers, car seats, nursery decor, and affordable gift sets from brands such as Hallmark and Millie Moon. The move follows a similar strategy by Target with its Baby Boutiques initiative, which contributed to 3.8% year-over-year sales growth in Q2. Kohl’s faces growing competition from off-price retailers like Ross Dress for Less and TJ Maxx, where customer visits have surged as shoppers seek better value.
Topics: Babies"R"Us partnership customer behavior Kohl's sales performance