Kohl’s Corporation (NYSE:KSS) has decided to open new stores but smaller in size compared to the initial locations. The decision comes one year after initiating its 3-year growth plan.
After a careful evaluation of the current performance, the firm has decided to launch new stores as part of reinforcing the company’s growth. The new stores will target customers in highly populated areas as well as areas with low population. Kohl’s CEO, Kevin Mansell is expected to launch the firm’s new project on Tuesday at the Women’s Wear Daily Apparel & Retail CEO Conference that will be held in New York.
The new stores will include five to ten new stores measuring 35,000 square feet strategically targeting small cities and downtown areas. The company will also launch 10 to 15 new stores that will specifically deal with footwear and apparel in malls. Kohl’s also plans to focus more attention on women’s apparel to attract more female clients.
Kohl’s original plan that was laid down last year was designed to push growth after a series of mediocre quarterly sales reports. The project that was dubbed the “greatness Agenda,” aimed to push the company’s annual sales to $2 billion by 2017. Other things that were part of the project include an enhanced use of available technology to boost the company’s presence in e-commerce as well as a loyalty program.
Since the project was put into place, the company has been registering better sales, but the quarterly growth rate has remained relatively low. The latest quarter alone registered 0.1%, thus raising concerns in Wall Street about how long the company can uphold the recently amended performance. As a result, the company’s shares plummeted by a 45% margin from a 52-week high of $79.60 that was achieved in April 2015.
Despite the concerns, the firm’s CEO, Kevin Mansell expressed his confidence in the company’s performance. He described the recent objectives as a long term plan that will catapult the company from its current position.
Sources: fortune, jsonline