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Kohl's (KSS) to Open Fifth E-Commerce Fulfillment Center

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Retailer Kohl’s Corporation (KSS - Free Report) has purchased a building for its new e-commerce distribution center. This is meant to enhance the company’s ability to fulfill purchases and serve customers nationwide. The 937,000-square-foot fulfillment center, located in Plainfield, IN, is expected to open in summer 2017 and will help handle the holiday season rush thereafter.

The opening of this new e-commerce fulfillment center will add to a total of 14 distribution centers across the country. This will be the company’s fifth distribution center and marks a step forward in the process of shipping merchandise from its stores, thus offering customers an option to buy online and pick up their purchased items at their local Kohl’s store. Other e-commerce fulfillment centers are located in San Bernardino, CA; Monroe, OH; Edgewood, MD and DeSoto, TX.

Kohl’s new facility will also employ full-time and part-time workers. The company expects to hire approximately 300 full- and 600 part-time associates over a three-year period.

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We note that Kohl’s is making efforts to maximize its omni-channel fulfillment facility, as omni-channel retailing is a stepping stone to the online world. Companies like Kohl’s already have logistics and physical stores in place and are expanding their reach further through online channels.

In early fiscal 2014, the company upgraded its e-commerce platform by rolling out the e-Sign technology, which helped strengthen its omni-channel platform. In 2015, Kohl’s rolled out the capability to ship online orders placed on from its network of more than 1,100 stores across the country. In addition, by choosing the buy online, pick up in store option, customers can purchase items online and pick up from local Kohl’s store which has premier, designated parking for them.

We believe this new center will help Kohl’s to deliver products more quickly and efficiently, alongside enhancing customer experience amid a difficult sales scenario.

Kohl’s has a Zacks Rank #3 (Hold).

Better-ranked companies in the broader retail sector include Macy’s Inc. (M - Free Report) , J. C. Penney Company, Inc. and Big Lots, Inc. (BIG - Free Report) . All of these stocks hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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