Kohl's continues to chase millennials with new PopSugar push
Kohl's is sweetening its millennial offerings with a new collection from PopSugar, the women's lifestyle site. To promote the trendy line, which uses PopSugar social media analysis to predict popular fashions, Kohl's is releasing a new marketing campaign called "Everything is better with a pop of sugar." A 30-second broadcast spot, created by Minneapolis-based Peterson Milla Hooks, lays into florals, stripes, hearts and cherries.
"One of our biggest opportunities is in the millennial segment," says Greg Revelle, chief marketing officer at Kohl's, noting that the chain has seen success with its Lauren Conrad line, which is also aimed at younger customers. "It's the fastest growing market in general in retail." The PopSugar line ranges in price from $24 to $84 and sells in sizes up to 24. Debuting Thursday, it will be available online and in 500 of Kohl's 1,100-store fleet.
Revelle notes that PopSugar, which says it reaches one of every two millennial women in the U.S. with its content, identifies emerging styles early on via social media and uses those insights to create apparel. "They're able to spot trends more accurately and sooner," he says. In addition to the broadcast spot, Kohl's will run shorter videos online and also use Twitter's promoted trend spotlight under the hashtag #PopSugaratKohls.
First announced last spring, the new line continues Kohl's quest to expand its customer base. The Menomonee Falls, Wisconsin-based retailer has also rolled out pilot programs with Amazon and sells Amazon products at some locations.
Such efforts are helping to dust off the 56-year-old retail chain. Last month, Kohl's reported a 4 percent rise in revenue to $4.6 billion, while profit, at $292 million, rose 40 percent over the year-earlier period. Comparable store sales for Kohl's, up 3 percent, beat analyst expectations.
On a second-quarter earnings call with analysts, Kohl's CEO Michelle Gass touted the new PopSugar collection, and noted that the chain will run more personalized digital ads for it targeting Kohl's millennial customers. "It is one of the things that we believe will bring some real newness and fashion relevancy into the assortment," she said.