• Sephora has more than 660 locations inside JCPenney stores. JCPenney leans on this partnership to drive foot traffic to its stores and boost sales.
  • UBS analysts say that this partnership is less beneficial for Sephora, however, which is likely suffering from dwindling foot traffic to malls.
  • This is playing into the hands of its competitors, such as Ulta, they said. Ulta has a store within 10 minutes of 78% of these JCPenney Sephora locations.

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JCPenney leans on its partnership with Sephora to drive foot traffic to its stores and boost sales, but analysts say the favor is not being reciprocated as these mall-based locations weigh on Sephora’s sales.

JCPenney first partnered with Sephora in 2006 to woo young female shoppers and differentiate its offering. It now has more than 660 Sephora store-in-stores, which translates to Sephora having a store in around 75% of JCPenney’s store fleet.

In recent earnings calls, senior…