Kohl’s Strategy For Boosting Online Sales? Open More Stores
While many rivals are closing stores, Kohl’s is adding to its numbers. The rationale is straightforward, the chain’s CEO Kevin Mansell told attendees at last week’s Shoptalk conference in Las Vegas. Kohl’s future success is dependent on its omni-channel efforts and, not only does the retailer lose physical store sales when it shutters a unit, but its online business drops off, as well. Mr. Mansell, who reported that 85 percent of Americans live within 15 miles of a Kohl’s, said the company’s online sales were flat in markets where it closed stores last year. As a company, online was up 12 percent. “Success for us is becoming an amazing omni-channel customer,” said Mr. Mansell, who said tech investments are weighted to supporting stores. Admitting that his company is “not as agile as we need to be,” Mr. Mansell pointed to new, smaller stores and Kohl’s mobile app as ways the retailer is making customers’ experiences “a lot more engaging.” Kohl’s CEO, in a nod to the sales shift from physical locations to online, said “stores will continue to get smaller over time.” About 20 percent of the chain’s store count currently consists of smaller stores. Kohl’s, which operates stores up to 100,000 square feet, is opening new units nearer to 70,000 square feet. Read more at Forbes.