The department store retailer is increasing its investment in brick-and-mortar through new store openings, remodels, enhanced omni-channel capabilities and the ongoing rollout of in-store Sephora shops.
The plans include the opening of about 100 smaller-format stores during the next four years in new markets.
Kohl’s believes the new stores, in total, represent a sales opportunity of more than $500M as they ramp-up to full productivity. The expansion follows a successful pilot of more than 20 smaller-format locations.
At approximately 80,000sq ft, the average Kohl’s store is too large for many small markets, according to the company. The smaller format, at about 35,000sq ft, will give Kohl’s the “flexibility to enter new neighbourhoods while also providing a hyper-localised experience to cater to the community’s needs,” the company stated.
“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 omni-channel retailer,” said Mark Griepentrog, Chief Property Officer, Kohl’s, which operates 1,165 stores. “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.”
