The news: Embattled retailer Kohl’s expanded self-pickup to all its more than 1,100 stores ahead of the holiday shopping season, per a company press release.
The benefit: With 80% of Americans living within 15 miles of Kohl’s, the retailer has an opportunity to use its extensive retail footprint to offer enhanced convenience to shoppers.
Click-and-collect growth slows: While some retailers have seen success in expanding click-and-collect options, the shift back to brick-and-mortar shopping has limited the feature’s popularity.
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.
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.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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