Kohl’s department stores that housed small-format Sephora retail shops saw a significant increase in sales in 2021 — one of many strong indicators that small-format stores could play a big role in the success of physical retail locations this year, according to consumer insight analyzer Placer.ai. Other retailers joining the growing trend are Macy’s, which opened three Market by Macy’s shops; Bloomingdales, which launched Bloomie’s; and Ulta Beauty, which will launch 100 shops within Target stores with plans for an additional 800 in the coming few years, according to GlobeSt.