In this article:
- Kohl’s is revamping its image.
- The retailer will open 850 Sephora mini-shops across their locations.
- Kohl’s hopes to transition from a department store to an active and casual wear retailer.
Kohl’s is cutting the ribbon on a new project at hundreds of locations.
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On March 7, 2022, Kohl’s announced an update to its strategic growth initiatives. The retailer will reportedly open Sephora mini-shops to three-quarters of its 1,100 stores (about 850 locations). Kohl’s hopes their partnership with Sephora will grow the business to a $2 billion operation. Kohl’s and Sephora first announced their collaboration in December 2020, saying that Sephora would bring its prestige beauty products to 850 Kohl’s locations by 2023.
Additionally, Kohl’s plans on opening 100 Kohl’s locations over the next four years, and will beef up its rewards program, Kohl’s cash. Customers who use the program will receive up to 7.5% on purchases, instead of the current 5%.
The announcement is part of Kohl’s efforts to move away from its image as a department store, and transition to a “Active and Casual lifestyle” retailer. Kohl’s aims to modernize its brand, after losing 17% in market share to discount retailers like TJ Maxx and Amazon since 2011. Other department stores, such as JC Penney and Sears, have declared bankruptcy after losing market share to big discounters.
Kohl’s also faces pressure from activist investors, who have been pushing the retailer to go private, or spin off its e-commerce business. Rather than back down to those investors, Kohl’s is attempting to transform its image. The company’s CEO, Michelle Gass, thinks that the chain can capitalize on a shift to more casual and activewear, as people spend more time at home. In the coming months, Kohl’s will ramp up its fitness, athleisure, and denim offerings., adding new life to its Women’s department by developing casual, outdoor, and swim lines. The new product lines will also emphasize inclusivity.
According to a press release from Kohl’s, the new stores will be smaller. The company will also focus more on online shopping by “enhancing discovery and shopability on Kohls.com.” Kohl’s projects that it will expand its online business to $8 billion.
Kohl’s new initiatives are an attempt to calm investors calling for changes, but they’re also a shift to remain relevant with changing consumer lifestyles and habits. Rest assured, as casual “Fridays” often become a daily occurance, we’ll have plenty of wardrobe options to keep us comfortable no matter which day it is.