Potential multiple takeover bids for Kohl's

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Potential multiple takeover bids for Kohl's

Post by Brian Lutz »

https://www.wsj.com/articles/kohls-shar ... 1643035296

Kohl's is reporting that several different private equity firms have expressed interest in an acquisition of the chain. One bid would value the chain at around $9 billion (approximately $64 per share) and a second company has not yet made a formal bid but is reported to be offering $65 a share. It is also rumored that a Real Estate Investment Company is interested in making a bit for the company's real estate holdings.
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Re: Potential multiple takeover bids for Kohl's

Post by arizonaguy »

Brian Lutz wrote: January 25th, 2022, 3:55 pm https://www.wsj.com/articles/kohls-shar ... 1643035296

Kohl's is reporting that several different private equity firms have expressed interest in an acquisition of the chain. One bid would value the chain at around $9 billion (approximately $64 per share) and a second company has not yet made a formal bid but is reported to be offering $65 a share. It is also rumored that a Real Estate Investment Company is interested in making a bit for the company's real estate holdings.
In 5 years we'll be writing about Kohl's bankruptcy / liquidation in much the same way that we saw Toys R Us, Stein Mart, and Bon Ton go bankrupt / liquidate. Unlike JCPenney Kohl's doesn't anchor a lot of malls (outside of California and places where they took over for Mervyn's) so there isn't a lot of incentive on keeping them afloat to keep malls alive.
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Re: Potential multiple takeover bids for Kohl's

Post by pseudo3d »

arizonaguy wrote: January 25th, 2022, 5:43 pm
Brian Lutz wrote: January 25th, 2022, 3:55 pm https://www.wsj.com/articles/kohls-shar ... 1643035296

Kohl's is reporting that several different private equity firms have expressed interest in an acquisition of the chain. One bid would value the chain at around $9 billion (approximately $64 per share) and a second company has not yet made a formal bid but is reported to be offering $65 a share. It is also rumored that a Real Estate Investment Company is interested in making a bit for the company's real estate holdings.
In 5 years we'll be writing about Kohl's bankruptcy / liquidation in much the same way that we saw Toys R Us, Stein Mart, and Bon Ton go bankrupt / liquidate. Unlike JCPenney Kohl's doesn't anchor a lot of malls (outside of California and places where they took over for Mervyn's) so there isn't a lot of incentive on keeping them afloat to keep malls alive.
I don't know. Toys R Us' demise is blamed on private equity, but the company had a lot of problems that management didn't try to address or only looked at when it was too late, like store conditions and a largely outdated business model. Some bad bets on movie merchandise (Star Wars 7, Ghostbusters 2016) didn't help either. Bon-Ton wasn't making money since 2010 and could be traced back to buying the Northern Department Store Group from Saks (back in 2005).
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Re: Potential multiple takeover bids for Kohl's

Post by buckguy »

pseudo3d wrote: January 25th, 2022, 10:51 pm
arizonaguy wrote: January 25th, 2022, 5:43 pm
Brian Lutz wrote: January 25th, 2022, 3:55 pm https://www.wsj.com/articles/kohls-shar ... 1643035296

Kohl's is reporting that several different private equity firms have expressed interest in an acquisition of the chain. One bid would value the chain at around $9 billion (approximately $64 per share) and a second company has not yet made a formal bid but is reported to be offering $65 a share. It is also rumored that a Real Estate Investment Company is interested in making a bit for the company's real estate holdings.
In 5 years we'll be writing about Kohl's bankruptcy / liquidation in much the same way that we saw Toys R Us, Stein Mart, and Bon Ton go bankrupt / liquidate. Unlike JCPenney Kohl's doesn't anchor a lot of malls (outside of California and places where they took over for Mervyn's) so there isn't a lot of incentive on keeping them afloat to keep malls alive.
I don't know. Toys R Us' demise is blamed on private equity, but the company had a lot of problems that management didn't try to address or only looked at when it was too late, like store conditions and a largely outdated business model. Some bad bets on movie merchandise (Star Wars 7, Ghostbusters 2016) didn't help either. Bon-Ton wasn't making money since 2010 and could be traced back to buying the Northern Department Store Group from Saks (back in 2005).
Kohl's a mature business with few places to grow so they seem to more stalled than truly troubled. I'd agree that BonTon (truly struggling for awhile), ToysRUs (too late in recognizing the impact of Walmart) and Stein Mart (constant churn in what it was supposed to be) are not apt comparisons. JCP has been struggling for quite awhile and are stuck with locations in dying malls. Private equity can still screw things up--they usually know nothing about merchandising and I would imagine that they'll do the usual stuff to cut costs (cut staffing and close some low volume stores) which can hurt operations. Still, one reason retail survives even as it its limping along (look at how long Sears/KMart has taken to die) is that it generates cash and as long as Kohl's does that, it will be around for quite awhile.
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Re: Potential multiple takeover bids for Kohl's

Post by storewanderer »

buckguy wrote: January 26th, 2022, 1:12 pm
Kohl's a mature business with few places to grow so they seem to more stalled than truly troubled. I'd agree that BonTon (truly struggling for awhile), ToysRUs (too late in recognizing the impact of Walmart) and Stein Mart (constant churn in what it was supposed to be) are not apt comparisons. JCP has been struggling for quite awhile and are stuck with locations in dying malls. Private equity can still screw things up--they usually know nothing about merchandising and I would imagine that they'll do the usual stuff to cut costs (cut staffing and close some low volume stores) which can hurt operations. Still, one reason retail survives even as it its limping along (look at how long Sears/KMart has taken to die) is that it generates cash and as long as Kohl's does that, it will be around for quite awhile.
Kohl's problem is they have lost touch with the customer. Their stores are not well rounded and many departments have a dead/tired feel with poor merchandising. They remind me of Sears, not many years ago even. Kohl's has declined quickly; they were not like this even 5 years ago.

Since reopening Kohl's has gotten even worse with significantly less inventory, less staffing, and fewer promotions. Clearly they are trying to balance things but it appears to me they are walking sales (and cash flow) by having less inventory and fewer promotions. This will push them down sooner than if they were operating the way they were 5 years ago.

Some retail types cash flow better than others. Grocery is especially great for cash flow.

I often wondered about a Kohls-some grocer merger. Steve Burd of Safeway was on Kohls Board and at one time they did a few promotions (spend $50 at Safeway get $10 Kohls coupon or something) but nothing really developed. Of course they started out in the grocery business too.
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Re: Potential multiple takeover bids for Kohl's

Post by rwsandiego »

storewanderer wrote: January 26th, 2022, 9:10 pm
buckguy wrote: January 26th, 2022, 1:12 pm
Kohl's a mature business with few places to grow so they seem to more stalled than truly troubled. I'd agree that BonTon (truly struggling for awhile), ToysRUs (too late in recognizing the impact of Walmart) and Stein Mart (constant churn in what it was supposed to be) are not apt comparisons. JCP has been struggling for quite awhile and are stuck with locations in dying malls. Private equity can still screw things up--they usually know nothing about merchandising and I would imagine that they'll do the usual stuff to cut costs (cut staffing and close some low volume stores) which can hurt operations. Still, one reason retail survives even as it its limping along (look at how long Sears/KMart has taken to die) is that it generates cash and as long as Kohl's does that, it will be around for quite awhile.
Kohl's problem is they have lost touch with the customer. Their stores are not well rounded and many departments have a dead/tired feel with poor merchandising. They remind me of Sears, not many years ago even. Kohl's has declined quickly; they were not like this even 5 years ago.

Since reopening Kohl's has gotten even worse with significantly less inventory, less staffing, and fewer promotions. Clearly they are trying to balance things but it appears to me they are walking sales (and cash flow) by having less inventory and fewer promotions. This will push them down sooner than if they were operating the way they were 5 years ago.

Some retail types cash flow better than others. Grocery is especially great for cash flow.

I often wondered about a Kohls-some grocer merger. Steve Burd of Safeway was on Kohls Board and at one time they did a few promotions (spend $50 at Safeway get $10 Kohls coupon or something) but nothing really developed. Of course they started out in the grocery business too.
You should have seen what Kohl's looked like before they bought MainStreet from Federated back in the late 1980's. OMG - their stores were terrible. Very outdated stores and low-end merchandise. Essentially, they adapted MainStreet's format and added small electrics, vacuums/floor care, and small furniture (bookcases, TV stands, etc.). Furniture was later eliminated. They used MainStreet's markets of Chicago, Detroit, and Minneapolis as test labs, revamped their Milwaukee stores, and then started their expansion in the mid- to late-90's.

Prior to A&P getting their mitts on it, Kohls Food Stores were pretty nice. They had some beautiful arched stores, much like Safeway's Marina stores.

Not saying they should do this, but if Albertson's bought Kohl's they could re-ignite the Jewel-Osco-Turn*Style concept.
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Re: Potential multiple takeover bids for Kohl's

Post by pseudo3d »

rwsandiego wrote: January 26th, 2022, 10:42 pm
storewanderer wrote: January 26th, 2022, 9:10 pm
buckguy wrote: January 26th, 2022, 1:12 pm
Kohl's a mature business with few places to grow so they seem to more stalled than truly troubled. I'd agree that BonTon (truly struggling for awhile), ToysRUs (too late in recognizing the impact of Walmart) and Stein Mart (constant churn in what it was supposed to be) are not apt comparisons. JCP has been struggling for quite awhile and are stuck with locations in dying malls. Private equity can still screw things up--they usually know nothing about merchandising and I would imagine that they'll do the usual stuff to cut costs (cut staffing and close some low volume stores) which can hurt operations. Still, one reason retail survives even as it its limping along (look at how long Sears/KMart has taken to die) is that it generates cash and as long as Kohl's does that, it will be around for quite awhile.
Kohl's problem is they have lost touch with the customer. Their stores are not well rounded and many departments have a dead/tired feel with poor merchandising. They remind me of Sears, not many years ago even. Kohl's has declined quickly; they were not like this even 5 years ago.

Since reopening Kohl's has gotten even worse with significantly less inventory, less staffing, and fewer promotions. Clearly they are trying to balance things but it appears to me they are walking sales (and cash flow) by having less inventory and fewer promotions. This will push them down sooner than if they were operating the way they were 5 years ago.

Some retail types cash flow better than others. Grocery is especially great for cash flow.

I often wondered about a Kohls-some grocer merger. Steve Burd of Safeway was on Kohls Board and at one time they did a few promotions (spend $50 at Safeway get $10 Kohls coupon or something) but nothing really developed. Of course they started out in the grocery business too.
You should have seen what Kohl's looked like before they bought MainStreet from Federated back in the late 1980's. OMG - their stores were terrible. Very outdated stores and low-end merchandise. Essentially, they adapted MainStreet's format and added small electrics, vacuums/floor care, and small furniture (bookcases, TV stands, etc.). Furniture was later eliminated. They used MainStreet's markets of Chicago, Detroit, and Minneapolis as test labs, revamped their Milwaukee stores, and then started their expansion in the mid- to late-90's.

Prior to A&P getting their mitts on it, Kohls Food Stores were pretty nice. They had some beautiful arched stores, much like Safeway's Marina stores.

Not saying they should do this, but if Albertson's bought Kohl's they could re-ignite the Jewel-Osco-Turn*Style concept.
Even when the food and department stores were under the same common ownership, I don't think Kohl's had combo stores.

Also, Safeway under Burd also mulled the idea of buying Kmart at one time. I don't know how far they got along with the concept or even if the Kmart execs were on board with the idea.
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Re: Potential multiple takeover bids for Kohl's

Post by Super S »

rwsandiego wrote: January 26th, 2022, 10:42 pm
storewanderer wrote: January 26th, 2022, 9:10 pm
buckguy wrote: January 26th, 2022, 1:12 pm
Kohl's a mature business with few places to grow so they seem to more stalled than truly troubled. I'd agree that BonTon (truly struggling for awhile), ToysRUs (too late in recognizing the impact of Walmart) and Stein Mart (constant churn in what it was supposed to be) are not apt comparisons. JCP has been struggling for quite awhile and are stuck with locations in dying malls. Private equity can still screw things up--they usually know nothing about merchandising and I would imagine that they'll do the usual stuff to cut costs (cut staffing and close some low volume stores) which can hurt operations. Still, one reason retail survives even as it its limping along (look at how long Sears/KMart has taken to die) is that it generates cash and as long as Kohl's does that, it will be around for quite awhile.
Kohl's problem is they have lost touch with the customer. Their stores are not well rounded and many departments have a dead/tired feel with poor merchandising. They remind me of Sears, not many years ago even. Kohl's has declined quickly; they were not like this even 5 years ago.

Since reopening Kohl's has gotten even worse with significantly less inventory, less staffing, and fewer promotions. Clearly they are trying to balance things but it appears to me they are walking sales (and cash flow) by having less inventory and fewer promotions. This will push them down sooner than if they were operating the way they were 5 years ago.

Some retail types cash flow better than others. Grocery is especially great for cash flow.

I often wondered about a Kohls-some grocer merger. Steve Burd of Safeway was on Kohls Board and at one time they did a few promotions (spend $50 at Safeway get $10 Kohls coupon or something) but nothing really developed. Of course they started out in the grocery business too.
You should have seen what Kohl's looked like before they bought MainStreet from Federated back in the late 1980's. OMG - their stores were terrible. Very outdated stores and low-end merchandise. Essentially, they adapted MainStreet's format and added small electrics, vacuums/floor care, and small furniture (bookcases, TV stands, etc.). Furniture was later eliminated. They used MainStreet's markets of Chicago, Detroit, and Minneapolis as test labs, revamped their Milwaukee stores, and then started their expansion in the mid- to late-90's.

Prior to A&P getting their mitts on it, Kohls Food Stores were pretty nice. They had some beautiful arched stores, much like Safeway's Marina stores.

Not saying they should do this, but if Albertson's bought Kohl's they could re-ignite the Jewel-Osco-Turn*Style concept.
A Facebook page I follow (Dead and Dying Retail) recently posted pictures of a Kohl's opened a few years ago that has open ceilings with warehouse style lights and polished concrete floors. I really hope that they aren't planning more of these as it's not the right look for a chain like this. While I don't consider Kohl's upscale, I don't consider it a bargain basement type of store either at their price point.
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Re: Potential multiple takeover bids for Kohl's

Post by retailfanmitchell019 »

rwsandiego wrote: January 26th, 2022, 10:42 pm
Prior to A&P getting their mitts on it, Kohls Food Stores were pretty nice. They had some beautiful arched stores, much like Safeway's Marina stores.
Yes, it was A&P's self-destruction that led to the demise of Kohl's Food Stores in 2003. Jewel was rumored to have been the acquirer of Kohl's Food Stores, but A&P chose to flat out shut down the stores around Milwaukee instead. The Madison stores were sold to Roundy's.
https://www.supermarketnews.com/archive ... kee-market
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Re: Potential multiple takeover bids for Kohl's

Post by rwsandiego »

retailfanmitchell019 wrote: January 27th, 2022, 4:31 pm Yes, it was A&P's self-destruction that led to the demise of Kohl's Food Stores in 2003. Jewel was rumored to have been the acquirer of Kohl's Food Stores, but A&P chose to flat out shut down the stores around Milwaukee instead. The Madison stores were sold to Roundy's.
https://www.supermarketnews.com/archive ... kee-market
I completely forgot that Jewel was rumored to acquire Kohl's. Thanks for the memory jog. Never quite understood why A&P just shut down the stores. Then again, I never quite understood why A&P did anything they did.
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