Kohl's Makeover Doesn't Work – CNN
The company said Tuesday that sales in stores open for at least one year have increased anemically by 0.4% over the last quarter. Kohl's profit fell 24% in the quarter compared to a year ago, and the retailer slashed its outlook and headed for shopping. It was the second time Kohl had cut his forecast this year.
CEO Michel Gus tried to get his best results back. "We are entering a holiday period with inertia," she said in a prepared statement.
This did little to motivate investors. ( KSS ) Stocks collapsed on Tuesday. Shares fell to 17% during early trading. ( M ) and Nordstrom ( JWN ) also dropped. The two chains are making profits later this week.
The results signal that Kohl's conversion strategies are not reaching. Despite Kohl's attempts to rethink to adapt to the rapid changes in the retail industry, the company can still avoid intense pressure on department stores from Amazon ( ] AMZN ) online brands, big box retailers and discount chains like TJMaxx, Kohl has lost 1
7% of its market share since 2011, as estimated by UBS earlier this year.  And TJX ( TJX )
which includes TJMaxx and Marshals said Tuesday that store sales open at least one hour
Kohl Gass CEO took a proactive approach to refining more than 1,150 online shopping stores, and many analysts believe Kohl is better than Macy, JCPenney and other brands as most of Kohl's stores are far from shopping centers.
Kohl partnered with Amazon to offer free returns to in-store customers. Gass said earlier this year that launching Amazon in all its stores was the company's "single largest initiative" for the year.
In addition, it has shrunk the size of some stores and leased additional space to companies such as Aldi and Planetary Fitness ( PLNT ) . He also tested concepts such as "toilet bars" for drawing Millennials. Equipment bars allow women to shop for "job search" and social occasions all in one place.
But to survive, Kohl may need to get bigger.