Global Retail Alliance
info@gra.world
  • Login
  • Register
  • Newsletter
  • Virtual Library
  • Choose your country
    • Australia
    • Brazil
    • China
    • Poland
    • Latin America
    • Middle East
GRAGRA
  • Home
  • Membership
    • Silver
    • Gold
    • Platinum
  • Event
  • News
  • Retail Tour
    • Our Tours
    • Europe Retail Tour
    • Retail Tour – New York
    • Retail Tour – Düsseldorf
  • Contact
  • Home
  • Membership
    • Silver
    • Gold
    • Platinum
  • Event
  • News
  • Retail Tour
    • Our Tours
    • Europe Retail Tour
    • Retail Tour – New York
    • Retail Tour – Düsseldorf
  • Contact

Retail News

  • Home
  • Retail News
  • Is Kohl’s a stronger retailer as it reopens stores?

Is Kohl’s a stronger retailer as it reopens stores?

  • Categories Retail News, Top News
  • Date May 21, 2020
  • Comments 0 comment

Kohl’s stores went largely out of business on March 20 as it closed all of its locations across the country. The negative impact of having to take that step showed up in the retailer’s first-quarter results, but the news isn’t all bad as Kohl’s came out of the quarter with insights its management believes will make it a stronger company going forward.

The retailer’s net sales fell 43.2 percent during the quarter. CEO Michelle Gass and CFO Jill Timm remarked several times during Kohl’s earnings call with analysts this week that store closures hit results in a big, bad way.

Gross margin fell to 17.3 percent during the quarter, down from 36.8 percent the year before, as Kohl’s aggressively promoted merchandise to clear inventory and took on the added costs of shipping online orders, which were up 24 percent for the period.

Kohl’s management felt good about the retailer’s financial position coming out of the first quarter. Furloughing employees, an unwanted but necessary move, helped cut costs significantly. Ms. Timm said Kohl’s was able to pull back product orders for March and April, reducing costs and inventory over the same period last year.

Kohl’s digital business grew 60 percent in April as closed stores shifted purchases online. “All of the key performance metrics were positive including traffic, conversion, average unit retail and units per transaction,” said Ms. Gass. “And we were pleased to see more new customers and younger customers shopping on our digital platform.”

More than 40 percent of all digital orders were fulfilled by stores for home delivery or pickup.

Ms. Gass noted a marked increase in pickup orders. “While we have been testing this capability in a couple of stores, it was still very new to us,” she said. “As the health crisis unfolded, our team swiftly put a strategy together and launched at scale very quickly.”

Kohl’s has reopened roughly half its stores since May 4. Store pickup will continue to be offered to customers and locations are also resuming the Amazon.com returns program. “We expect to see traffic build as customers return items purchased over the last several months,” said Ms. Gass.

Source: RetailWire

Tag:coronavirus, delivery, department stores, Kohl’s, omnichannel

  • Share:
gsiino

Previous post

Was the $3.3 billion Walmart spent on Jet.com worth it?
May 21, 2020

Next post

Bob Mariano has plans to create a great ‘next-gen’ grocery store
May 21, 2020

You may also like

Celine
Celine Shop-In-Shop Opening – Paris
15 March, 2023
Private-LAbels-fashion-luxury
Private labels: the future of luxury department stores?
6 March, 2023
EUROSHOP_2023_WEB-1200×857
Euroshop 2023! Top 75 Specialists & Key Highlights
4 March, 2023

Leave A Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search News:

News category:

News Archive:

Last News:

Celine Shop-In-Shop Opening – Paris
15Mar2023
Private labels: the future of luxury department stores?
06Mar2023
Euroshop 2023! Top 75 Specialists & Key Highlights
04Mar2023
TOTEME Shop-in-shop in Seoul
03Mar2023
Y-3 opens its first ever store Down Under
03Mar2023

© 2022 Global Retail Alliance | info@gra.world | Privacy Policy