- Retailer plans to increase its investment in store strategies
through new store openings, remodels, and enhanced omnichannel
capabilities
- By 2023, Sephora at Kohl’s will enter 850 doors, reflecting the
new, more modern Kohl’s
- Kohl’s plans to open 100 new, small format stores over the next
four years, reaching new customers in untapped markets
- New store growth represents a sales opportunity of more than
$500 million
Kohl’s (NYSE: KSS) is deeply committed to its retail footprint
and is evolving its real estate approach to match the changing
industry landscape and customer needs. Over the next three years,
Kohl’s will increase its investment in store strategies that will
improve the store experience for customers and associates, and over
the next four years, about 100 new, smaller format stores will open
in markets previously untapped by Kohl’s physical presence.
“Kohl’s began with roots as a brick-and-mortar company, and
these 60 years of experience have set the company up to become a
leading omnichannel retailer,” said Mark Griepentrog, Kohl’s chief
property officer. “Our strong and productive off-mall store base
can continuously evolve with our customer’s expectations and
demand, and we see substantial opportunities to leverage our real
estate in producing long-term growth.”
Stores: The Foundation of Kohl’s Omnichannel Platform
Kohl’s stores are the foundation of its omnichannel platform. In
2021, 99% of Kohl’s 1,165 stores were four-wall cash flow positive
and approximately 95% generated more than $1 million in four-wall
cash flow. The health and profitability of stores is in part due to
their strategic locations, creating convenience for the 80% of
Americans that live within 15 miles of a Kohl’s store. In order to
continue meeting customers’ needs and wants, Kohl’s is evolving the
store experience with customer preferences through increased
investments.
Reinvention of Kohl’s Stores
Kohl’s is modernizing its stores to provide customers with
features that offer convenient services, opportunities for
discovery and an overall inviting experience. By offering services
such as In Store Pick Up, Drive-Up, Self-Pick Up, and Amazon
Returns, Kohl’s is delivering the convenience customers expect from
a retailer, and beyond.
Along with convenience, discovery and inspiration are also key
factors in a customer’s experience. By 2023, Sephora at Kohl’s will
be introduced to 850 locations, reflecting a new and more modern
Kohl’s. This modern Kohl’s includes the prominent position of
Sephora at the front of the store with expanded categories in the
surrounding areas such as active, as well as casual and exciting
new brands like Draper James RSVP.
Further, Kohl’s is introducing dedicated zones for discovery
which will inspire curations of cross-category product and brands
including diverse- and female-owned companies to meet the needs of
customers seeking newness and inspiration. While Kohl’s is known
for its iconic national brands and differentiated private brands,
this initiative allows the company to leverage its leading
omnichannel platform and invest in these emerging brands to curate
destinations for discovery in its stores. Since the inception of
Kohl’s emerging brand program in 2019, the company has introduced
over 70 new brands to its customers. By transforming the store
flow, Kohl’s is creating a sense of discovery every time a customer
walks in.
Entering New Markets with Smaller Formats
Kohl’s will open about 100 new, smaller format stores over the
next four years in markets currently untapped by existing Kohl’s
stores. The expansion of the small format stores follows a
successful pilot of over 20 smaller stores. The average Kohl’s
store of around 80,000 square feet is too large for many small
markets. By introducing these smaller format stores, most at
approximately 35,000 square feet, Kohl’s gains the flexibility to
enter new neighborhoods while also providing a hyper-localized
experience to cater to the community’s needs.
This June, Kohl’s will open a brand-new store in Bonney Lake, WA
and in the fall, four additional new small format stores will open
in San Angelo, Texas., Morgantown, W.Va., Tacoma, Wash., and Lenox,
Mass. These new stores will also be among the first to test Sephora
at Kohl’s in smaller store formats. As a data-centric company,
Kohl’s is using information technology to create a highly-localized
experience in these smaller stores such as catering the new Tacoma
store’s merchandise toward the active lifestyle customer in that
market by offering a more focused assortment of outdoor gear. In
total, these new stores represent a more than $500 million in sales
opportunity as they ramp to full productivity.
Integrated Store and Digital Technology for a Seamless
Omnichannel Experience
Kohl’s ongoing investments in technology across its physical
footprint continue to deliver on future store experiences that
benefit the customer. The company is rolling out self-serve buy
online, pick up in store and by the end of the year, it will be
available in all stores. Kohl’s is also continuing to test
self-serve returns, currently in over 100 stores, with more planned
throughout the next 18 months. The self-return experience is unique
to Kohl’s, offering a simple in-store drop-off process.
Additionally, self-checkout is being tested and will deliver a new
kind of checkout experience for customers.
Kohl’s integration of store and digital technology enables the
company to support enhanced discovery and easy shopability with new
functionality being released continuously. Stores also play an
integral role in fulfilling omni orders, with approximately 40% of
Kohl’s digital orders currently being fulfilled by stores. The
integration allows Kohl’s to convert more customers to become
omnichannel customers, and those who shop Kohl’s across channels
are at least four times more productive than store-only or
digital-only shoppers. The strength of store and digital
integration allows Kohl’s to provide a world-class omnichannel
experience.
As the future of retail evolves, Kohl’s continues to put an
emphasis on the in-store experience and is committed to its
footprint across the country. For more information on Kohl’s
strategy, view the 2022 Investor Day presentation here.
Cautionary Statement Regarding Forward-Looking
Information
This release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward looking statements include information concerning the
Board’s review of expressions of interest and the Company’s
business strategies, plans, and objectives. The Company intends
forward-looking terminology such as “believes,” “expects,” “may,”
“will,” “should,” “anticipates,” “plans,” or similar expressions to
identify forward-looking statements. Such statements are subject to
certain risks and uncertainties, which could cause the Company's
actual results to differ materially from those anticipated by the
forward-looking statements. You should understand that these
forward-looking statements are not guarantees of strategic action,
performance, or results. These risks and uncertainties include, but
are not limited to, risks described more fully in Item 1A in the
Company's Annual Report on Form 10-K, which is expressly
incorporated herein by reference, and other factors as may
periodically be described in the Company's filings with the SEC.
Forward-looking statements relate to the date initially made, and
Kohl’s undertakes no obligation to update them.
About Kohl's
Kohl’s (NYSE: KSS) is a leading omnichannel retailer. With more
than 1,100 stores in 49 states and the online convenience of
Kohls.com and the Kohl's App, Kohl's offers amazing national and
exclusive brands at incredible savings for families nationwide.
Kohl’s is uniquely positioned to deliver against its strategy and
its vision to be the most trusted retailer of choice for the active
and casual lifestyle. Kohl’s is committed to progress in its
diversity and inclusion pledges, and the company's environmental,
social and corporate governance (ESG) stewardship. For a list of
store locations or to shop online, visit Kohls.com. For more
information about Kohl’s impact in the community or how to join our
winning team, visit Corporate.Kohls.com or follow @KohlsNews on
Twitter.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220525005144/en/
Jen Johnson, jen.johnson@kohls.com
Kohls (NYSE:KSS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kohls (NYSE:KSS)
Historical Stock Chart
From Apr 2023 to Apr 2024