Amid the prevailing tough retail environment and online shopping hype retailers are trying all means to remain afloat and lure in customers. Kohl’s Stores Inc. (KSS - Free Report) is no exception to the trend. However, the upcoming holiday season offers an opportunity for the retailer to improve its comps by increasing footfall at its stores. Hence, it is geared to expand its store base and reach out to the maximum number of customers.
As per media reports, Kohl’s has announced that it will launch six, smaller-format stores in fall 2016. Two of these stores are to be located in Wisconsin. The other four stores are located in South Dakota, Minnesota, Illinois and Indiana. These six new stores will be smaller than normal-sized Kohl's facility and become operational on Sep 30.
The smaller format store is a new concept at Kohl’s. The 35,000 square feet stores enables the retailer to save on real estate costs and also helps it to penetrate markets that would have been previously too small for opening stores.
Apart from opening more stores, the retailer is also gearing for the upcoming holiday season with more workforce to handle the increased traffic. Last week, the company announced that it would hire over 69,000 workers for the fast-approaching 2016 holiday season, the number remaining same as the previous year.
The additional workers will be stationed at more than 1,100 store locations in 49 states, as well as its distribution and e-commerce fulfillment centers and at Kohl’s credit operations. Per the company, most of these positions are anticipated to be filled by mid-November.
The company has also stocked its stores with the most wanted toys and iconic national brands across the most popular toy categories for the upcoming holiday season. Customers can either go to Kohl’s stores or shop for its collection of holiday toys at Kohls.com.
We keep our fingers crossed in the hope that these initiatives may help Kohl’s to better compete with discount retailers and online retailers like Amazon.com, Inc. (AMZN - Free Report) in the holiday season.
Kohl’s carries a Zacks Rank #3 (Hold). Better ranked retail stocks include J.C. Penny Company, Inc. (JCP - Free Report) and Macy’s, Inc. (M - Free Report) .
J.C. Penny carries a Zacks Rank #2 (Buy) and has a long term earnings growth expectation of 16%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Macy’s Inc. also carries a Zacks Rank #2 and has a long term growth rate of 12% over the past five years.
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