Potential multiple takeover bids for Kohl's

Predicting the demise of Sears & Kmart since 2017!
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Re: Potential multiple takeover bids for Kohl's

Post by buckguy »

Alpha8472 wrote: April 5th, 2022, 12:18 am I would assume it would be a Target employee who is trained to give expert cosmetics consultations and advice. Along with giving advice and upselling products, the Target employee would also guard the cosmetics items by keeping them in locked display cases. Target employees are paid less than Ulta employees.

The store within a store concept is good idea, but there should be a cash register at the cosmetics counter to ring up those cosmetics items so people do not leave without paying. Sephora stores within other stores seemed to have that format.
You'd need a lot of volume to support that kind of model. Cosmetics used to be sold through leased departments that employed commissioned salespeople in department stores---there may still be some very high end lines that operate that way but the volume operators like Revlon dropped that model quite awhile ago. My sister-in-law made a nice living, relatively speaking, working for Revlon. But in the end, too much overhead even for their large margins and most of those businesses have been bought and sold numerous times. Drug stores used to have staffed cosmetic counters but volume didn't justify that and those have been gone even longer.

I assume that these are contract or license operations and that they are only really profitable for the store without extra staffing. Cosmetics have ridiculous markups, so they may already figure shrinkage into the cost.
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Re: Potential multiple takeover bids for Kohl's

Post by Romr123 »

Weird one I saw yesterday--Troy, MI Target (formerly Greatland--double entry) getting remodeled with a Ulta Beauty...but wait...there are 2 other upscale cosmetics (one free-standing Ulta, one Sephora in the Kohl's ) in the strip center.
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Re: Potential multiple takeover bids for Kohl's

Post by ClownLoach »

So apparently the latest proposal is to sell to... the franchiser of Vitamin Shoppe?

You couldn't write a funnier soap opera than this Kohl's sale process if you tried. Maybe they can replace the Sephora with a Vitamin Shoppe. This sounds about as viable as the Haggen acquisition of all those Albertsons stores, or when Fred's Pharmacy was going to acquire the overlap in the proposed Rite Aid/Walgreens deal.

Maybe we all can make up a better acquisition partner, one that makes even less sense than this. My vote would be for Sears to take it over. I mean really, this is just a ridiculous process - management keeps making preposterous announcements that don't come to pass (we'll cut all the stores in half and add Grocery stores, or Gyms, or something regardless of how much more expensive construction is than building a new store - no wait, we will just open another 100 new stores all small format which will really help with the fact we already have too many stores...) and then buyers who clearly are not capable of fixing this cesspool but would never execute any of the Kohl's management plans either keep crawling out of the woodwork. Just pathetic.

https://www.cnbc.com/2022/06/06/kohls-e ... roup-.html
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Re: Potential multiple takeover bids for Kohl's

Post by storewanderer »

ClownLoach wrote: June 6th, 2022, 5:36 pm So apparently the latest proposal is to sell to... the franchiser of Vitamin Shoppe?

You couldn't write a funnier soap opera than this Kohl's sale process if you tried. Maybe they can replace the Sephora with a Vitamin Shoppe. This sounds about as viable as the Haggen acquisition of all those Albertsons stores, or when Fred's Pharmacy was going to acquire the overlap in the proposed Rite Aid/Walgreens deal.

Maybe we all can make up a better acquisition partner, one that makes even less sense than this. My vote would be for Sears to take it over. I mean really, this is just a ridiculous process - management keeps making preposterous announcements that don't come to pass (we'll cut all the stores in half and add Grocery stores, or Gyms, or something regardless of how much more expensive construction is than building a new store - no wait, we will just open another 100 new stores all small format which will really help with the fact we already have too many stores...) and then buyers who clearly are not capable of fixing this cesspool but would never execute any of the Kohl's management plans either keep crawling out of the woodwork. Just pathetic.

https://www.cnbc.com/2022/06/06/kohls-e ... roup-.html
I think it is a fantastic move. What better than to start franchising out Kohl's Stores. That is sure to be a winning strategy.

Better yet they can do co-branding. They can co-brand Buddy's Home Furnishings franchise with Kohl's and Vitamin Shoppe franchise. They can run 3 different franchisees under one roof to help make the franchises more accessible.

I think they also should go ahead and get Sears into the loop here and co-brand with Sears Hometown so they can also offer appliances. If they think the Sears name is too tarnished they could just throw that stuff under the Buddy's name. Buddy's also sounds like a great name for a place that sells used appliances, so perhaps they could get into that business as well.

The only other thing they'd need is to get a franchise based auto repair shop involved too and they could cover most of the bases. Depending what direction they go with Buddy's, and offering used appliances potentially, maybe they could get into the used tire business. Many businesses around Kohl's Stores specialize in new tires and surely there is a niche for used tires even in newer middle class suburbs.

Not sure where that would leave Sephora. Maybe Sephora could start a new downscale brand for Kohls to fit in with these other businesses. They could make an agreement with Dollar Tree to source Dollar Tree's cosmetics products and sell them in the Kohl's Stores.

The future is looking brighter and brighter for Kohl's. It is fascinating their management has entered "exclusive" sale talks with the franchise group. While I was not sure how factual the CNBC article was, in reading it, I thought maybe I was reading a tabloid or an article published April 1, but I realize now this is actually real news.

In other news, JC Penney is absolutely going to make a come back and don't count Sears out just yet because even they may be able to beat what is about to happen to Kohl's.

Perhaps after franchise group realizes they made a terrible mistake, Sears can come in and take over. They can do business with Kohls the same way they have Sears in recent years. That will ensure Kohls remains open for another 10+ years. It may be the longest shot at life Kohls has. I am sure Eddie Lampert would eliminate the expense of upper management at Kohls immediately which would also be a good move because the current upper management is beyond out of touch with reality. Once we all come to terms with the reality that a turnaround of Kohls is not going to happen and the chain is on the downward projectory, I think we can all agree that Eddie Lampert could do a better job guiding Kohls down its upcoming path to death.

Also I wonder which franchisee will get the handling fee that Amazon is paying for returns that Kohls takes, and which franchisee's payroll that program will come out of. Assuming Amazon wants to be housed in this type of establishment.

I wonder if franchise group has committed to retaining the current management team as well.
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Re: Potential multiple takeover bids for Kohl's

Post by veteran+ »

This why executives make over 350 times more than a typical worker!

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Re: Potential multiple takeover bids for Kohl's

Post by pseudo3d »

storewanderer wrote: June 6th, 2022, 10:28 pm
ClownLoach wrote: June 6th, 2022, 5:36 pm So apparently the latest proposal is to sell to... the franchiser of Vitamin Shoppe?

You couldn't write a funnier soap opera than this Kohl's sale process if you tried. Maybe they can replace the Sephora with a Vitamin Shoppe. This sounds about as viable as the Haggen acquisition of all those Albertsons stores, or when Fred's Pharmacy was going to acquire the overlap in the proposed Rite Aid/Walgreens deal.

Maybe we all can make up a better acquisition partner, one that makes even less sense than this. My vote would be for Sears to take it over. I mean really, this is just a ridiculous process - management keeps making preposterous announcements that don't come to pass (we'll cut all the stores in half and add Grocery stores, or Gyms, or something regardless of how much more expensive construction is than building a new store - no wait, we will just open another 100 new stores all small format which will really help with the fact we already have too many stores...) and then buyers who clearly are not capable of fixing this cesspool but would never execute any of the Kohl's management plans either keep crawling out of the woodwork. Just pathetic.

https://www.cnbc.com/2022/06/06/kohls-e ... roup-.html
I think it is a fantastic move. What better than to start franchising out Kohl's Stores. That is sure to be a winning strategy.

Better yet they can do co-branding. They can co-brand Buddy's Home Furnishings franchise with Kohl's and Vitamin Shoppe franchise. They can run 3 different franchisees under one roof to help make the franchises more accessible.

I think they also should go ahead and get Sears into the loop here and co-brand with Sears Hometown so they can also offer appliances. If they think the Sears name is too tarnished they could just throw that stuff under the Buddy's name. Buddy's also sounds like a great name for a place that sells used appliances, so perhaps they could get into that business as well.

The only other thing they'd need is to get a franchise based auto repair shop involved too and they could cover most of the bases. Depending what direction they go with Buddy's, and offering used appliances potentially, maybe they could get into the used tire business. Many businesses around Kohl's Stores specialize in new tires and surely there is a niche for used tires even in newer middle class suburbs.

Not sure where that would leave Sephora. Maybe Sephora could start a new downscale brand for Kohls to fit in with these other businesses. They could make an agreement with Dollar Tree to source Dollar Tree's cosmetics products and sell them in the Kohl's Stores.

The future is looking brighter and brighter for Kohl's. It is fascinating their management has entered "exclusive" sale talks with the franchise group. While I was not sure how factual the CNBC article was, in reading it, I thought maybe I was reading a tabloid or an article published April 1, but I realize now this is actually real news.

In other news, JC Penney is absolutely going to make a come back and don't count Sears out just yet because even they may be able to beat what is about to happen to Kohl's.

Perhaps after franchise group realizes they made a terrible mistake, Sears can come in and take over. They can do business with Kohls the same way they have Sears in recent years. That will ensure Kohls remains open for another 10+ years. It may be the longest shot at life Kohls has. I am sure Eddie Lampert would eliminate the expense of upper management at Kohls immediately which would also be a good move because the current upper management is beyond out of touch with reality. Once we all come to terms with the reality that a turnaround of Kohls is not going to happen and the chain is on the downward projectory, I think we can all agree that Eddie Lampert could do a better job guiding Kohls down its upcoming path to death.

Also I wonder which franchisee will get the handling fee that Amazon is paying for returns that Kohls takes, and which franchisee's payroll that program will come out of. Assuming Amazon wants to be housed in this type of establishment.

I wonder if franchise group has committed to retaining the current management team as well.
Funny you mention Sears...Franchise Group actually bought Sears Outlet a few years ago and rebranded them to American Freight (which they recently bought). Since American Freight and Vitamin Shoppe still appear to be doing good business, and Pet Supplies Plus one of the few expanding stores, good for them, I guess?
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Re: Potential multiple takeover bids for Kohl's

Post by storewanderer »

Appears Franchise Group is trying to lower what it will pay for Kohl's down to $50 per share (initially they were offering $60 per share supposedly).

Also Franchise Group is working a deal to keep Kohl's current management in place.

Can't wait to see the Franchise Group Mall. Kohl's, Buddy's Scratch and Dent Appliances, Pet Supplies Plus, Vitamin Shoppe, all under one roof. It will be great. Should try to bring in a grocery operation too. Maybe one of those surplus operations that sells expired groceries. Maybe they could upgrade to a Save a Lot franchise agreement. This is all starting to really come together into a retail format that will surely have Wal Mart shaking in its boots and Target spooked. Not sure how Sephora fits into this sort of thing.

I also wonder if Franchise Group could franchise different departments within a Kohls. For instance they could franchise out the kid's department to someone, then franchise out men's to someone else, then women's to someone else. Not sure anyone would want Kohl's home department but maybe they could just give that to whoever the Buddy's franchisee would be.

So many great possibilities...

I'm still having a really hard time taking this seriously. In all seriousness, I cannot believe this is the best possible outcome for Kohl's.
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Re: Potential multiple takeover bids for Kohl's

Post by mbz321 »

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Re: Potential multiple takeover bids for Kohl's

Post by storewanderer »

mbz321 wrote: July 3rd, 2022, 9:24 am The sale is off. https://www.abc27.com/news/us-world/bus ... vironment/
Good. Now they can get back to negotiating with buyers that may have actually made some sense.

They wasted prime time with "Franchise Group." They probably could have formalized a deal with a legitimate buyer during this time period. It feels like the exclusive with "Franchise Group" was more of a survival tactic by current management than a serious bid. Especially once it came out they were negotiating to keep current management and it leaked that "Franchise Group" was trying to get the price down.
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Re: Potential multiple takeover bids for Kohl's

Post by Bagels »

I stopped at Kohls last night - only my second visit since the shut down. It was an older, former Mervyn’s location and had been recently renovated (most of the ex-Mervyn’s were lightly remodeled; this particular location retained much of their flooring). It looked nice; only a handful of shoppers in the store, but the cashier told me they had been “crazy busy.” Decent merchandise mix with a fair amount of winter clearance - all marked 50% off the lowest tag, yielding some very good deals (jeans for under $5, etc.). No coupons necessary on this particular weekend, but there were plenty of great deals (all mens) - flip flops for $2, shorts, swimsuits and tank tops for $5, some decent running shoes for $25, etc.

I also stopped at JCPenney - which was again my second visit since they reopened. This particular location had a similar number of shoppers at Kohls, but nobody seemed to buying anything. On my last visit, inventory looked anemic and they had removed the huge amount of clearance inventory that built ore-Covid. Unfortunately, it’s building up again. The Sports Illustrated brand appears to be a dud, which isn’t a shocker when you sell the crap they’re selling. In contrast to Kohls, their big weekend sales prices seemed high. $35 for a US Polo Association polo shirt, for example, and $15 for US Polo AssocIation t-shirts. Walmart prices the polos at $20 and T’s at $10 - not sure if the quality is different.

I think Kohls is far better off on its own…
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