Shopping Centers Today International

MAR 2016

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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Page 17 of 59

"The Greatness Agenda is designed to address where there have been weak- nesses in the business model," said Oliver Chen, a managing director at Cowen and Co., a New York City– based investment banking firm. Chen points to several things that have been crimping Kohl's style. Among these is the consumer's preference for buy- ing national brands at discount prices, while Kohl's has been preoccupied with T wOuld be hArd TO imAGiNe CAlliNG any corporate strategic plan by a more ambitious name than The Greatness Agenda. but that is what menomonee Falls, wis.–based Kohl's is calling its three-year program, which is now one year in op- eration. The company's plans include diversifying the merchandise mix, bringing out new store concepts and introducing a mobile app by which customers may access promotions, coupons, loyalty-club re- wards and Kohl's credit-card ac- count information. Kohl's is hop- ing the program will help boost annual sales across its nearly 1,200 u.S. stores to about $21 million by the end of next year, from the current $19 million. its Sonoma and Croft & barrow private labels. Then, too, competition from off- price rivals Nordstrom rack, ross Stores and T.J.maxx has been formidable. These challenges have tended to stunt Kohl's growth for the past three years. Net sales through the fiscal third quarter (ended Oct. 31) totaled $12.8 billion, up by just 1 percent from the comparable year-ago period, while comparable-store sales rose by a thin 0.8 percent. Kohl's thinks it can turn this around by expanding its loyalty pro- gram, strengthening its omni-channel platform with pickup-in-store options for online orders, and offering more merchandise that reflects local shopper preferences. The company has opened some smaller stores measuring about one-third the size of the traditional Kohl's stores, at only 35,000 square I Fixing Kohl's The reTailer is revamping iTself wiTh new sTores, producTs and an app By Beth Mattson-Teig r e t a I l I n g t o d a y 18 S C t / m a r c h 2 0 1 6

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