Jamie Arena’s Post

Another quarter, another weak set of numbers from Kohl's. Even with an extra week of trade in the quarter, Kohl’s still hasn’t managed to grow sales which fell 1.1%. Comparable sales, which strip out the extra week, were down by 4.3%. Some of the slump is the result of more constrained consumers pulling back and buying fewer items – a trend that has hit Kohl’s shoppers harder than those of many other department stores. But it is also evident that Kohl’s customers are shopping around more widely and are diverting some of their spend to other chains like Target and TJX. This trend has been in play for a while and shows no real sign that it is reversing. A lot of this is related to uninspiring stores and a weak proposition. Kohl's has plans to address this, including the opening of new Babies R Us shop-in-shops at 200 stores. But while the current plans may help to stem the tide of decline in the year ahead, they are unlikely to produce stellar growth. I chatted with Retail Dive about the latest results... https://lnkd.in/e9u8ShJh #retail #retailnews #departmentstores

Kohl's recently announced a strategic partnership with Babies R Us to open shop-in-shops within Kohl's stores. This move aims to attract new customer segments, enhance the in-store experience, and increase foot traffic. However, with customer traffic down and stores struggling to define their identity, it's uncertain whether this partnership will be enough to turn things around. While leveraging the strength of the Babies "R" Us brand might help, the success of this initiative will depend on how well Kohl's can execute the integration and improve the overall shopping experience. This strategy could either be a step towards revitalization or just another attempt to stay afloat in a challenging retail environment. Time will tell if these partnerships can truly improve Kohl's business or if they are grasping to find their identity. Kohl's seems to be following their success with SEPHORA shop within shops but its unclear if that strategy is driving the brand for success! #StrategicPartnerships #CustomerExperience #RetailStrategy #ShopInShop #RetailRevival #Kohls #BabiesRUs

Will Kohl's benefit from its latest third-party venture with Babies"R"Us? On the plus side, adding Babies R Us is more of a help than a hinderance to Kohl's. It bolsters the proposition in an important area of the market and gives Kohl’s more credibility in the space. This should help drive some incremental revenue into the business. There is also a view that if Kohl’s can pull in younger family and family formation shoppers for baby products it can, hopefully, convert them into buying other categories like toys or homewares.    However, for this to work properly, Kohl’s really needs to improve the look and feel of its stores and make its own assortments and pricing more compelling. If it fails to tackle these things, this will be a reasonable venture but one that cannot throw a halo over the rest of the business – much as has been the case with Sephora.   The bottom line is that Kohl’s can add in as many third-party brands and ventures as it wants, but there is a tactic admission here that its own core proposition isn’t good enough. It still needs to work to dispel this view. Great to chat with Inside Retail US about this, link to article in comments. #retail #retailnews #departmentstores #babies #parents

In recent years, Kohl's, once a retail model, has faced a dramatic decline with profits plummeting nearly 60%. Consumers, driven by deal-seeking behavior, have impacted Kohl's strategies. Simplified pricing and fewer promotions backfired, echoing JCPenney's past mistakes. Competitors like Nordstrom Rack, Ross Stores, Inc., and TJMaxx shine by offering top brands at competitive prices, a strategy Kohl's might need to emulate. Their struggle reflects the department store challenge sans mall advantages, signaling a need for strategic reevaluation. #BrickAndMortarStruggle #ConsumerDealPreference #RetailLessons #CompetitorSuccessStories #AdaptOrDecline Streaming on Instagram, Spotify, Apple, TikTok, & YouTube Follow us on: Adeel's LinkedIn | Adeel Mitha Salim's LinkedIn | Salim Gheewalla Sameer's LinkedIn | Sameer Badruddin

As its digital boom continues to fade, Kohl's has decided that it wants to focus more on stores as well as continuing to invest in online. That makes sense given the opening of more Sephora shop-in-shops and some of the simple steps like bringing more home and seasonal product to the front of stores. However, the general atmosphere of many Kohl's stores feels increasingly tired and devoid of energy. While Kohl’s does not have the capital to spend billions on refurbishments, it needs to inject at least some money into making improvements. Others in the market, like Target, have already done this work. Some, such as Walmart, are stepping up their efforts. Against this backdrop, Kohl’s is falling further behind and is simply not providing customers with a modern and engaging store experience. This is losing it customers and market share. In short, if you're going to focus on physical you need to actually work at making stores a destination people want to come to. Thanks to Retail Dive for including my thoughts in this article. #retail #retailnews #stores

Do emerging mom's today even put any value in the Babies "R" US brand? Is it a liability even? The debate to start anew vs use existing brands is a always fascinating one. Maybe it comes down to why we think it failed in first place. Or maybe this is a kmart/sears discussion. Obsolete brands and models tying their floating debri together in order to survive for just one more day. #retailnews

Macy’s hasn’t closed 150 stores yet. But Target, Kohl’s CEOs already smell opportunity. Macy’s is closing about 150 of its namesake stores across the country. It could put up to $2 billion in annual sales up for grabs for other retailers. Off-price chain T.J. Maxx and Kohl’s could benefit because they already count many Macy’s shoppers as their customers, according to Jefferies and Earnest Analytics. $M $TGT $KSS $TJX $ROST https://lnkd.in/ejP4bfpr #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables

What “baby” steps is Kohl's taking in their turnaround strategy? Kohl’s is teaming up with Babies R Us to bring baby gear, furniture, and more to about 200 stores nationwide. With Babies R Us making a comeback after store closures, Kohl’s aims to cater to younger customers and revitalize its offerings under new CEO Tom Kingsbury's leadership. As Kohl’s continues its turnaround efforts, this move not only fills a gap left by specialty retailers but also adds another dimension to Kohl’s strategy of staying relevant and attracting a younger audience. Get ready for a whole new world of baby shopping at Kohl’s this August. #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #BabiesRUs #Kohls Kohl's (KSS) Q4 2023 earnings report, Babies R Us deal (cnbc.com)

Today’s results from Kohl's are dismal. They show a company that remains in freefall at a time when most other retailers are at least maintaining their elevation. A 5.3% decline in overall sales, underpinned by a 4.4% decline in comparables, is way worse than the market which, across the categories Kohl’s sells, grew by 2.9% over the quarter. This is the third year in which first quarter sales have declined. And, compared to the same period in 2019, sales are down by a sharp 16.8%. In cash terms, this means Kohl’s has lost $643 million in revenue. Unfortunately, the problems on the sales line are now filtering through to the bottom line where last year’s modest profit of $14 million has been replaced with a $27 million loss. Kohl’s management team says a lot of the right things around merchandising and the essentials of retail. However, not much has changed on the shop floor, which is one of the reason why Kohl's continues to lose customers on top of the 1.5 million it lost over the past five years. Thanks to The Wall Street Journal for including my comments in the article linked in the comments.... #retail #retailnews #departmentstores #trading #KSS

Can Kohl's turn its lackluster performance around with its new CEO? Just like Warren Shoulberg, I see this change in leadership as both a potential asset and liability. Kohl's can't continue to rest on its laurels (or Sephora storefronts) for much longer, but there isn't a whole lot of room for real innovation without a complete overhaul. #Retail #Turnaround #MiddleMarket