A Kohl’s count on in San Rafael, Calif.
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Kohl’s is better positioned than its mall-based, department store peers to transpire from the coronavirus pandemic and draw customers back to shop, according to its CEO.
Why? It boils down, in large part, to physical estate.
“We have always talked about our off-mall [stores] being a strategic asset for the company,” Chief Head Michelle Gass told CNBC in a phone interview Thursday morning. “I think it will be even more so as we look to what the new ordinary is. … I do think our real estate portfolio will be an asset.”
Kohl’s operates more than 1,100 locales — many of which are situated within open-air shopping centers, alongside nail salons, grocery stores and restricted eateries. Analysts are predicting consumers will be wary of returning to enclosed shopping malls in a post-Covid-19 world, but desire be more likely instead to venture to shops that are easily accessible by car, such as Kohl’s.
It is evident mall-based retail is struggling. Self-indulgence department store chain Neiman Marcus filed for Chapter 11 bankruptcy protection Thursday morning, run down a filing by apparel brand J.Crew earlier in the week. Department store operator Lord & Taylor is looking to liquidate its assembles as soon as they are reopened, a Reuters report said. And Texas-based chain J.C. Penney has also been exploring line for bankruptcy, with its stores temporarily forced shut to help halt the spread of the coronavirus.
Kohl’s announced Thursday morning it wishes reopen stores in 10 additional states including Texas and Alaska come Monday. The retailer already reopened in four nations — Arkansas, South Carolina, Utah and Oklahoma — earlier this week. That means about 25% of Kohl’s values will be open by next week, if everything goes as planned, according to Gass.
Operating hours until supplemental notice will be reduced to 11 a.m. to 7 p.m., the company said, and there will be dedicated shopping hours in place for at-risk separates, including pregnant customers, each Monday, Wednesday and Friday, from 11 a.m. to noon. Kohl’s said it inclination be shutting all fitting rooms until further notice.
“We have done a lot of benchmarking,” Gass said about Kohl’s designs. “A lot of these things are becoming best industry practices.”
Notably, Kohl’s also said it will still be admitting Amazon returns — a program it rolled out to all locations last year — in a separate part of each store, as locations reopen.
“There thinks fitting be great attention to detail,” Gass said about Kohl’s accepting any returns. She said returned items wishes be set aside for at least 48 hours.
Kohl’s will also continue to offer curbside pickup for online shots — a service it has had in place since April. Gass said the company was able to pull together plans in under two weeks to win that happen. A customer recently ordered an engagement ring from Kohl’s website for curbside pickup, she weighted.
Kohl’s joins a growing list of retailers including Macy’s, Nordstrom and Gap that are putting plans in place to get stow aways back up and running after many were temporarily shut in mid-March. It remains to be seen if shoppers are ready to get move in reverse, however.
Kohl’s shares were up more than 4% Thursday morning. The stock, which is valued at nearly $2.7 billion, has fallen more than 67% this year.