Kohls in the News
Kohl's same-store sales up 2 percent in January
Bizjournals Feb 3, 2006
Kohl's Corp. said same-store sales for January increased 2 percent. The Menomonee Falls, Wis.-based department store chain said that its total sales for the four weeks that ended Jan. 28 were $676.4 million, up 13.3 percent from the $596.9 million posted for the comparable period in 2005.
For the fourth quarter, Kohl's posted same-store sales growth of 2.7 percent, slightly below the 3 percent it forecasted for the quarter in early January. The retailer believed that 3 percent same-store sales growth for the fourth quarter would lead to an approximately 19 percent increase in net income, to $1.06 to $1.07 per share.
Kohl's ends the fiscal year with a 14.5 percent increase in total sales, to $13.4 billion compared with $11.7 billion the year before. Same-store sales -- a measure of sales at stores open during both years -- increased 3.4 percent.
Kohl's (NYSE: KSS) now operates 732 stores in 41 states, including seven in the Pittsburgh area, with an eighth opening in March in Strabane Square in Washington County.
Kohls' Overview
The big news at Kohl’s is the much anticipated arrival of Chaps clothing for kids, women and men. This latest brand follows on the heels of Candies in girls and juniors.
Our first impression of the merchandise is that it is safe and preppy and feels much like the merchandise Sears was trying to add to their floor with the acquisition of Land’s End. The prices are in line with their general strategy but the goods offer little in the way of fashion sizzle. Modern preppy looks elsewhere have evolved from this late 80’s tan and tartan look so we will be watching this merchandise closely to see if this is what the market is really hankering for. Our first impression is that it is not.
Candies is looking fresh and on trend with all of the bells and whistles that you would expect from a high profile line. Hillary Duff is the Candies spokesperson and Kohl’s is benefitting from this relationship with star power and exposure on their floor. If you look at the junior report, you will see that the Candies brand is consistently the highest priced merch on the floor. They have done a great job expanding this shoe brand into a fashion and even a lifestyle brand.
At one Kohl’s we also noticed they may be trying to create a ‘Shop within a shop’ feel with their young men's selections. They have a merchandised island with junior and young men's mannequins surrounded by basic polos/tees and jeans for guys along with jeans for juniors. The junior area is across the aisle but not really adjacent to this section. The selections on the mannequins and on the floor were not very strong although the general placement idea could really take off. If the selections were more powerful they could have a Hollister-esque little sub department right there on the floor that would generate more junior business as well as be a cool place for young men to shop.
In kids we noticed that some brands such as Evergirl were replaced by ‘Star’ powered Candies. This new line is pricier and less basic than its predecessor and also feature Hillary Duff as part of the Ad campaign. The Chaps goods are also available here and as with the adult offerings, the items available are painfully preppy with little in the way of newness. Sure the basic striped polos may sell but it will probably not be because of anything other than their position on the floor. In the mini kids, the house brand Sonoma is looking best with a bit of fashion flair in their execution and a few fun touches thrown in.
Opportunities in Mini Girls:
Licensed apparel continues to be the brand
of choice for little kids besides Osh Kosh and Carters, but truth be
told, the house brand Sonoma is doing the best job here in mini. They
have some of the most fashionable goods in the whole store right here!
We would love to see more eyelet blouses, western trims (let's move on
from the heavy ethnic) and some more 2 for one deals like Sonoma does
in boys with shirts and tees. How about a legging and a skirt in one
package!
Take a look at what was on the floor in each department: |
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