J.C. Penney is testing a 350-square-foot Sephora boutique at its store in Sault Ste. Marie, Mich., a concept that may bring the high-grossing beauty brand to about 400 smaller-format Penney stores. The department store first partnered with the beauty retailer in 2006 and about 600 of its full-line department stores now have 2,000-square-foot Sephora shops. Read the Fortune story here