Kohl’s is well known for being a powerhouse store that has anything that you could possibly want or need, and on top of the already great deals, they are constantly handing out coupons and “Kohl’s cash,” to keep you coming back for more. Just when you thought Kohl’s already had it all…they are adding more. The chain department store is now going to be selling groceries at ten of its stores, as part of a pilot program.
Sound a bit odd to you? Rightfully so, as most clothing stores don’t know a whole lot about selling groceries…or do they. Evidently, Kohl’s has got it together when it comes to selling a wide variety of products and they have done their homework. Recently, the company teamed up with retail powerhouses, Amazon and Under Armour, in hopes of learning a bit about strengthening their brand and offering more convenience to their customers. They also took it a step further and reached out to Aldi for assistance. Since Aldi is well-known for its bargains, it was a given that they would be a fitting company to learn from.
But why fix something that already seems to be working well?
“The key priority we have as a company is to drive traffic,” said Kevin Mansell, Kohl’s Chief Executive. “We’re focused on traffic-driving retailers: Groceries, supermarket chains, they drive a lot of traffic. We’re finally on a path where we’re getting more shoppers.”
Aldi’s has happily jumped on board with Kohl’s plan and the bargain grocery store will soon be selling goods in the famous department store. As part of the pilot plan, Kohl’s is planning to have separate entrances to the grocery portion of the stores. This means that it won’t really look like a Walmart or Target, but instead, maybe more of a neighbor that exists as separate entities.
If you’ve noticed that your local Kohl’s has started to cut back on inventory, that may be because the company is planning to dedicate around 10% of its locations to groceries and 9,000 square feet of the chosen stores will be devoted to groceries.
Talk about a one-stop shop. Now you can swing into Kohl’s, grab your clothing items and then head next door for your grocery goods.
“We believe the opportunity to leverage our real estate through this effort has benefits, from both top line with increased traffic, and the bottom line, through expense offset, both fixed and variable,” Mansell said.
It seems as if more and more companies are pairing up to bring a greater convenience to customers. In a world where you can order something from Amazon and have it delivered to your door in two hours, businesses are finding that they need to step it up in order to keep up with Amazon’s convenience. We can only expect there to be more partnerships like this and if Aldi’s and Kohl’s relationship proves successful in the ten pilot stores, then there is a good chance that other department stores are going to want to pair up with bargain grocers.