Kohl’s Corp. gave an update earlier this week on its growth initiatives and long-term financial plan as the company continues to face pressure from activist investors.
“Kohl’s is undergoing a significant transformation of our business model and brand to be the retailer of choice for the active and casual lifestyle,” said CEO Michelle Gass. “We have fundamentally restructured our business to drive sustainable and profitable growth, while providing a strong return to shareholders. We have laid the foundation for our winning strategy and have started to implement key initiatives that will scale and accelerate our growth in the years ahead.”
The department store retailer said it plans to open more than 100 smaller-format stores during the next four years. Kohl’s is currently testing the new format, which will average about 35,000sq ft, in the Seattle area, reported CNBC. The company also plans to roll out a self-service buy online, pickup in store option to all stores in 2022. And it will continue to test self-service returns and check-out options.
In other initiatives, Kohl’s is looking to grow its Sephora business to more than $2bn in annual sales. In February, the company said it plans to add 400 Sephora at Kohl’s shops in 2022. There are currently 200 Sephora at Kohl’s locations, with a goal of 850 shops by 2023.
Kohl’s also said it plans to keep growing its active and casual apparel categories and to significantly grow its women’s dress business, while also expanding outdoor and swimwear, and expanding its selection of inclusive sizes. It also plans to introduce a co-branded credit card in 2023.
