Today in Retail: Target and Kohl’s Fight Over Beauty Shoppers; Retailers Try to Reduce Holiday Returns

In today’s top retail news, Target’s partnership with Ulta is facing off against the Kohl’s partnership with Sephora, while retailers are trying to cut down on the items that shoppers return when the holidays are through. Also, Walmart is working with Yahoo! to boost its social commerce offerings, and Belk has partnered with Afterpay to offer customers a buy now, pay later (BNPL) option.

Target, Kohl’s Battle for In-Store Beauty Shoppers

As consumers have left their homes at a steadily increasing pace over the past several months, most retailers have been pulling out all the stops to invite them into their stores, creating experiences and partnering with brands to make their locations more appealing. In August, Target unveiled its initial fleet of Ulta shop-in-shops at locations across the U.S.; just weeks later, competitor Kohl’s opened its first shop-in-shops with Sephora, chasing the same set of customers ahead of the holiday season.

Retailers Hope Virtual Try-Ons, Clothing Rentals Can Cut Down on Returns 

After last year’s holiday season, 63% of consumers said they planned to make returns, according to PYMNTS research, with one-third going inside the store to make the return and 31% using a mailing service. Another 21% utilized a merchant-designated drop-off location. Since then, many retailers have actively sought ways to decrease the number of returns they have to process, as reverse logistics can get costly for merchants.

Walmart, Yahoo! Beef up Social Commerce, AR Offerings for Holiday Shoppers

Walmart and Yahoo! are continuing their holiday shopping-related partnership, leaning into new augmented reality (AR) and digital opportunities. The companies have added a new game, “Play for Joy,” on Instagram, letting users play a claw machine and grab as many virtual Walmart gifts, and there is a video series with lifestyle influencer Taryn Newton.

Belk Taps Afterpay to Power Buy Now, Pay Later

BNPL platform Afterpay and Belk department stores unveiled a flexible payment program for online and in-store shoppers, giving them the option to pay for their gifts in four interest-free installments. Belk said it has seen a 50% jump in average order values since it started offering Afterpay to its customers.