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Home / Business / Kohl's makeover does not work – CNN

Kohl's makeover does not work – CNN



On Tuesday, the company said sales in stores that were open for at least one year increased by anemic 0.4% over the past quarter. Kohl's profit fell 24% during the quarter compared to a year ago, and the retailer set the prospect on its way into the holiday shopping area. It was the second time Kohl's cut the forecast this year.

CEO Michelle Gass tried to put her best spin on the results. "We're going into the holiday with speed," she said in a prepared statement.

It did little to mollify investors. Kohl's ( KSS ) stock fell on Tuesday. Shares fell as much as 17% during early trading. Macy & # 39; s ( M ) and Nordstrom ( JWN ) also dropped. These two chains are reporting earnings later this week.

The results indicate that Kohl's makeover strategies are short-lived.

Despite Kohl's attempts to reinvent himself to adapt to major changes in retail, the company can still & # 39; t avoids strong pressure on department stores from Amazon ( AMZN ) online brands, retailers and discount chains like TJMaxx. Since 201
1, Kohl's has lost 17% of its market share, according to a UBS estimate earlier this year.
And TJX ( TJX ) which includes TJMaxx and Marshalls, said Tuesday that stores open at least one year increased by 4% last quarter. The company has lifted the guidelines for the rest of the year.

Gass, Kohl's CEO, has taken a proactive approach to recreating the retailer's more than 1,150 stores for online shopping time. Kohl's is considered by many analysts to be in a better position than Macy's, JCPenney and other branded stores because most of Kohl's stores are away from malls.

Kohl has partnered with Amazon to provide free returns for customers in stores. Earlier this year, Gass said the rollout of Amazon to all stores was the company's "biggest initiative" for the year.

It has also shrunk the size of some stores and leased the extra space to companies such as Aldi and Planet Fitness ( PLNT ) . It has also tested concepts such as "outfits" to draw Millennials. Wearables allow women to shop by "looking" for work and social occasions – in one place.

But in order to survive, Kohl may need to get bigger.


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