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 investmentin 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.
more at: https://investors.kohls.com/news-releases/news-details/2022/Kohls-Commitment-to-Driving-Growth-Supported-by-Increased-Investments-in-Stores/default.aspx