Ecommerce Guide

Big Changes Afoot At Omnichannel Retailer Kohl’s

Kohl’s, one of the USA’s leading retailers has announced a series of changes to its bricks and mortar stores and online operations that will see them open more small-format stores to its footprint and boosting its fulfilment network. It expects to open four smaller stores in the third quarter, adding to the ones it opened in 2016. They will be located in North Smithfield, RI; Blue Ash, OH; East Windsor, NJ; and Montebello, CA.

The retailer’s new 937,000 square foot facility in Plainfield, IN is also set to open this month and will be dedicated to fulfilling website orders. Equipped with the latest technology to maximize the productivity and throughput, it will help grow Kohl’s ecommerce side of the business and maintain its position as a true omnichannel retailer.

“Our stores remain at the core of our omnichannel strategy and we will continue to invest in them by opening smaller formats, right sizing and optimizing our selling space and working to ensure that shopping in our stores is an engaging and inspiring experience for our customers,” said Kevin Mansell, Kohl’s chairman, chief executive officer and president.

“We have set a goal to be the best-in-class omnichannel retailer and opening our fifth ecommerce distribution center will support the delivery of online orders faster and more efficiently to customers nationwide.”

Despite having some recent troubles, Kohl’s enjoys some benefits and advantages over its rivals such as J.C. Penney and Macy’s, who are both tied to malls and have been closing stores.

Talking to Retail Dive, Howard Davidowitz, chairman of retail consulting and investment banking firm Davidowitz & Associates Inc. said:

“Kohl’s has the best ROI, the best profitability and seven points less in cost because they’re off the mall, not on the mall. They have the lowest cost structure. They’re like T.J. Maxx — 80,000-square-foot stores but a racetrack format with central checkout. Kohl’s has the least adjustments to make and … the best matrix because they’re not a high-cost operator.”

About Kohl’s

Kohl’s is one of the USA’s leading omni channel retailers with over 1100 stores across 49 states. Kohl’s offers national and exclusive brands and market leading prices as well as an enjoyable and easy shopping experience in both its stores and online on its website and mobile app. It originally opened in 1927 as a corner grocery store, its first department store opening in 1962. It is currently America’s second largest department store by retail sales in the USA and also has a strong ecommerce presence too.

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Scott Bretton

Scott Bretton

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