Kohl’s Revamping Stores, Cutting Down On Retail Space In Online Push – Consumerist

Your local Kohl’s could look a bit different later this year: The retailer plans to revamp stores by cutting down on retail space and moving its focus to online sales.

Kohl’s announced plans today to “enhance its omnichannel” capabilities by opening four small format stores and remodeling half of its current locations in an effort to become “operationally smaller” by the end of the year.

Rightsizing

With the plan, the Wisconsin-based retailer says it will aim to enhance store profitability and improve customer experience by revamping interior layouts to better balance inventory and the adjustment of displays and fixtures.

In one case, the company says it will “rightsize” — or reduce the size  — of a Georgia store from 89,000 square feet to 62,000 square feet.

“By optimizing and rightsizing stores based on customer and inventory needs, Kohl’s stores are able to operate more efficiently and provide a more engaging customer experience,” the company said.

So far, Kohl’s says it has rightsized 300 stores, and plans to have half of its 1,100 stores revamped by the end of the year.

Connected Stores

Also by the end of the year, the retailer will open four smaller format stores in Rhode Island, Ohio, New Jersey, and California. These stores will will be about 35,000 square feet, and join eight other small format Kohl’s locations.

Kohl’s customers can browse and purchase the full selection of Kohls.com merchandise via in-store Kohl’s Kiosks and have merchandise shipped to their home free of charge. The locations will also serve as in-store pickup locations for customers’ online orders.

Focusing Online

Additionally, the retailer says that by reducing sales space it will be able to bolster its backrooms, providing more space to fulfill customers’ online orders, and orders purchased online for in-store pickup. All Kohl’s stores nationwide also serve to fulfill and ship Kohls.com orders.

“Our stores remain at the core of our omnichannel strategy,” Kevin Mansell, Kohl’s chairman, said in a statement, adding that the company has a goal to be the “best-in-class omnichannel retailer.”

The retailer also announced today that it would open a fifth e-commerce fulfillment center in Indiana this month.

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