Kohl’s problems continue: Capitalizing on customers’ affinity for in-store pickup may not be enough for Kohl’s to turn its business around. The retailer has had a fraught few months: After a contentious battle with activist investor Macellum Advisors, the company finally agreed to put itself up for sale—only to reject a proposed bid from Franchise Group in July.
- Kohl’s is struggling with sluggish sales: Net sales fell 5.2% year-over-year in Q1, and the company expects growth to stay virtually flat this year, per its latest earnings statement.
- To reverse the trend, the retailer is leaning on new retail concepts including Discover @ Kohl’s and its Sephora shop-in-shops to attract customers to stores.
- The company also recently upgraded its retail media network to give partners better insight into shopper behavior and preferences.
Looking ahead: The in-store pickup functionality could help Kohl’s appeal to millennials, city dwellers, and men—the cohorts most likely to use BOPIS, per Morning Consult analyst Claire Tassin. But it’s unlikely the new feature will result in a wave of new Kohl’s customers, meaning the retailer will have to continue innovating its in-store experience and product selection to drive sales growth.
Ultimately, making holiday shopping easier won’t solve Kohl’s larger issue—namely, the lack of a distinct identity. In fact, the retailer’s greatest value lies not in its brand equity but in its real estate portfolio. Without a complete brand overhaul, Kohl’s ability to survive in a crowded market is in doubt.
Go further: Read our forecast on US click-and-collect sales.
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