Kohl's To Open 100 Small Format Stores

Predicting the demise of Sears & Kmart since 2017!
Alpha8472
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Kohl's To Open 100 Small Format Stores

Post by Alpha8472 »

These stores will be about 35,000 square feet and feature self checkout. The checkouts will be to the side of the store instead of at the entrance so that you can see a strong product vignette in the entryway. The store will focus heavily on inclusive mannequins of various skin tones and body sizes. The stores will be open and modern with concrete floors and warehouse style decor.

https://chainstoreage.com/first-look-ko ... w-elements
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Re: Kohl's To Open 100 Small Format Stores

Post by storewanderer »

Alpha8472 wrote: November 3rd, 2022, 11:08 pm These stores will be about 35,000 square feet and feature self checkout. The checkouts will be to the side of the store instead of at the entrance so that you can see a strong product vignette in the entryway. The store will focus heavily on inclusive mannequins of various skin tones and body sizes. The stores will be open and modern with concrete floors and warehouse style decor.

https://chainstoreage.com/first-look-ko ... w-elements
I predict failure for this format.

I guess the self checkout will be nice, no more attempts to get a Kohl's Card, Kohl's Loyalty Card, donate money to something, etc. I look forward to their video about how to remove a security tag from the clothing. First lawsuit from a customer who pokes themself with the security tag needle may make them rethink the self checkout thing.
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Re: Kohl's To Open 100 Small Format Stores

Post by Super S »

https://www.simon.com/mall/tacoma-mall/map/#/

Tacoma Mall is an interesting place to try this. Not sure if this store will succeed here or not though. First, it is detached from the mall, on part of the site of the former Sears, and the mall no longer extends out to this area. This in itself is odd due to the rain we get in this part of the country, but might not matter since most Kohl's are freestanding/strip mall stores. It is also interesting due to the fact that Tacoma Mall has very large Macy's and JCPenney stores to compete with, but those two anchors are older 1960s era stores and neither Macy's or JCPenney utilizes all that square footage the way they could. This location could also invite theft if it relies on self checkout. This is unfortunately a growing issue in both Seattle-Tacoma as well as Portland.

Kohl's did open a smaller, but more traditional looking store at The Commons in Federal Way several years back which features an inside mall entrance only, but is configured in a way that this could be easily converted if the mall was redeveloped.

Maybe they should try these in smaller towns where a smaller store would be more appropriate for the area. Kelso's Three Rivers Mall, where there is a dead approx. 50K square feet Macy's, would be a good place to try this and it actually might revive a dying mall.
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Re: Kohl's To Open 100 Small Format Stores

Post by storewanderer »

Kohls seems to have removed all of the "high" merchandise from the perimeter of the store. The perimeters now only have stuff at eye level or lower. The stores look empty and in the middle of a going out of business sale.

I checked on both Reno Kohls this week and the two stores continue to really change.

South Reno Kohls- this store has so much empty space inside, I am really wondering if closure has already been planned but nobody has told them yet. The shoe area has what feels like more empty shelves than stocked shelves. Clothing areas seem to have almost all private label and nothing else (Levi's was the only branded area that was stocked). The entire beauty department is empty fixtures, most of the accessories department is empty space with a few weird racks of clearance Christmas items, there is a huge open space in the home section, much of home like towels are poorly stocked. I was in the store early evening and only saw a couple other customers when I was there. Shelves are a mess, merchandising is terrible, probably the worst merchandised department store I've seen (about on par with 2022 Sears but with more products). The parking lot was busy with probably 150 cars at the Texas Roadhouse in the lot at the time and in the past it was not unusual to see people visit both businesses. Hardly any staffing and in the 45 minutes I was in the store I saw maybe 3 customers go through checkout. My interaction with the teenage cashier was so unprofessional I could not believe it. I can't recall the last time I had such a surly interaction with an employee somewhere, had to wait for him to finish a conversation about nothing with his coworker before I was even helped, and seemed real upset I didn't want to apply for a Kohls Card to get 35% off. Must have a quota and with no traffic in the place it is impossible to meet any quota. I do not expect Sephora to go here since there is already a Sephora a mile away.

Northwest Reno Kohls- this store is busier since it has less competition and newer so it looks nicer. This store it felt like about 60% of its merchandise was on clearance racks marked 70% off. Again tons of empty space on the perimeter and on the space surrounding the perimeter. Nothing on top areas of perimeter. Customer service/Amazon return area unattended (ring bell for service) and 2 cashiers open. The store was much better merchandised than the other one and seemed to have more products. Shoe department here is larger and was probably 95% stocked, home area also larger and much better stocked. Still the place felt "off." The merchandise doesn't look as good as it used to and the majority of the store being long clearance racks makes it feel more like Ross or something (maybe that is their strategy to attract more customers). This store I am somewhat surprised they haven't added Sephora yet.
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Re: Kohl's To Open 100 Small Format Stores

Post by dcpeachy »

In the last month, I've been in two of the Albuquerque stores. The NW location (freestanding, in a center with Sam's Club, Michaels, Barnes & Nobles, Dick's Warehouse Sale, Best Buy, Total Wine, HomeGoods--busy center) sounds similar, with the walls empty and long racks of clearance throughout. In the kitchen area, all appliances had signs about having great taste, but they're sold out and to go online for the items. One set of doors in closed completely. At the front, the only cashier was the manager, who was working the jewelry counter.

The Coronado Center location (former Mervyn's, two floors) has huge areas that are completely empty with racks pulled in front of the barren space. On the second floor, home displays have been pushed together so that only the ends and the outside are merchandised. The inner shelves are empty. Even then, there is very little merchandise on the shelves. This store has also completely removed cosmetics and fragrances. As for Sephora, they're 3 doors away in the mall, which is closer than the JCPenney Sephora which was being renovated to JCPenney Beauty.
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Re: Kohl's To Open 100 Small Format Stores

Post by ClownLoach »

dcpeachy wrote: February 19th, 2023, 1:16 pm In the last month, I've been in two of the Albuquerque stores. The NW location (freestanding, in a center with Sam's Club, Michaels, Barnes & Nobles, Dick's Warehouse Sale, Best Buy, Total Wine, HomeGoods--busy center) sounds similar, with the walls empty and long racks of clearance throughout. In the kitchen area, all appliances had signs about having great taste, but they're sold out and to go online for the items. One set of doors in closed completely. At the front, the only cashier was the manager, who was working the jewelry counter.

The Coronado Center location (former Mervyn's, two floors) has huge areas that are completely empty with racks pulled in front of the barren space. On the second floor, home displays have been pushed together so that only the ends and the outside are merchandised. The inner shelves are empty. Even then, there is very little merchandise on the shelves. This store has also completely removed cosmetics and fragrances. As for Sephora, they're 3 doors away in the mall, which is closer than the JCPenney Sephora which was being renovated to JCPenney Beauty.
Seems like they are removing jewelry to add Sephora? I was in a couple traditional single floor stores, one with Sephora and one without. Same single entrance/exit setup with half the registers mothballed. Saw three different customers go out the supposed closed doors, one probably was a shoplifter as the checkpoint alarm beeped. The Sephora location appears to have eliminated jewelry. It's pretty clear that nobody in these stores has been trained in any way on the basics of visual merchandising. I am unsure if there is any planogram strategy aside from a few select tables and racks. These stores have really descended to the Marshall's or Ross level of execution, with prices that would make Macy's blush.
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Re: Kohl's To Open 100 Small Format Stores

Post by storewanderer »

ClownLoach wrote: February 19th, 2023, 5:17 pm
dcpeachy wrote: February 19th, 2023, 1:16 pm In the last month, I've been in two of the Albuquerque stores. The NW location (freestanding, in a center with Sam's Club, Michaels, Barnes & Nobles, Dick's Warehouse Sale, Best Buy, Total Wine, HomeGoods--busy center) sounds similar, with the walls empty and long racks of clearance throughout. In the kitchen area, all appliances had signs about having great taste, but they're sold out and to go online for the items. One set of doors in closed completely. At the front, the only cashier was the manager, who was working the jewelry counter.

The Coronado Center location (former Mervyn's, two floors) has huge areas that are completely empty with racks pulled in front of the barren space. On the second floor, home displays have been pushed together so that only the ends and the outside are merchandised. The inner shelves are empty. Even then, there is very little merchandise on the shelves. This store has also completely removed cosmetics and fragrances. As for Sephora, they're 3 doors away in the mall, which is closer than the JCPenney Sephora which was being renovated to JCPenney Beauty.
Seems like they are removing jewelry to add Sephora? I was in a couple traditional single floor stores, one with Sephora and one without. Same single entrance/exit setup with half the registers mothballed. Saw three different customers go out the supposed closed doors, one probably was a shoplifter as the checkpoint alarm beeped. The Sephora location appears to have eliminated jewelry. It's pretty clear that nobody in these stores has been trained in any way on the basics of visual merchandising. I am unsure if there is any planogram strategy aside from a few select tables and racks. These stores have really descended to the Marshall's or Ross level of execution, with prices that would make Macy's blush.
I don't understand what has happened here at all. This chain used to have good execution and decent products. There used to be multiple employees in the store trained on visual merchandising and it was basically their job to do just that.

I am not sure if there is no planogram strategy or if the stores just aren't following any such strategy. Basic presentation and housekeeping (neatness, folding items, etc.) seems to be very variable by store location with some stores still trying and others completely clueless.

The home category in general confuses me. It seems like the home category is just completely gone at this point at physical retail stores. Save for Target, specialty stores like Williams Sonoma, and Wal Mart, the category is basically dead at department stores, BBB is more than half closed or closing, that "At Home" thing seems to be expanding but I am not convinced what type of inroads they may make out west.
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Re: Kohl's To Open 100 Small Format Stores

Post by ClownLoach »

storewanderer wrote: February 19th, 2023, 10:45 pm
ClownLoach wrote: February 19th, 2023, 5:17 pm
dcpeachy wrote: February 19th, 2023, 1:16 pm In the last month, I've been in two of the Albuquerque stores. The NW location (freestanding, in a center with Sam's Club, Michaels, Barnes & Nobles, Dick's Warehouse Sale, Best Buy, Total Wine, HomeGoods--busy center) sounds similar, with the walls empty and long racks of clearance throughout. In the kitchen area, all appliances had signs about having great taste, but they're sold out and to go online for the items. One set of doors in closed completely. At the front, the only cashier was the manager, who was working the jewelry counter.

The Coronado Center location (former Mervyn's, two floors) has huge areas that are completely empty with racks pulled in front of the barren space. On the second floor, home displays have been pushed together so that only the ends and the outside are merchandised. The inner shelves are empty. Even then, there is very little merchandise on the shelves. This store has also completely removed cosmetics and fragrances. As for Sephora, they're 3 doors away in the mall, which is closer than the JCPenney Sephora which was being renovated to JCPenney Beauty.
Seems like they are removing jewelry to add Sephora? I was in a couple traditional single floor stores, one with Sephora and one without. Same single entrance/exit setup with half the registers mothballed. Saw three different customers go out the supposed closed doors, one probably was a shoplifter as the checkpoint alarm beeped. The Sephora location appears to have eliminated jewelry. It's pretty clear that nobody in these stores has been trained in any way on the basics of visual merchandising. I am unsure if there is any planogram strategy aside from a few select tables and racks. These stores have really descended to the Marshall's or Ross level of execution, with prices that would make Macy's blush.
I don't understand what has happened here at all. This chain used to have good execution and decent products. There used to be multiple employees in the store trained on visual merchandising and it was basically their job to do just that.

I am not sure if there is no planogram strategy or if the stores just aren't following any such strategy. Basic presentation and housekeeping (neatness, folding items, etc.) seems to be very variable by store location with some stores still trying and others completely clueless.

The home category in general confuses me. It seems like the home category is just completely gone at this point at physical retail stores. Save for Target, specialty stores like Williams Sonoma, and Wal Mart, the category is basically dead at department stores, BBB is more than half closed or closing, that "At Home" thing seems to be expanding but I am not convinced what type of inroads they may make out west.
The weakest part of AtHome is the kitchen and bath category. They're really a giant decor store, basically 80,000 Sq ft of the Michaels seasonal department with the kitchen and bath section from Big Lots.
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Re: Kohl's To Open 100 Small Format Stores

Post by storewanderer »

Is At Home like, I forget what it was, but it was some concept that Builder's Square tried to have to convert stores to before they went out of business entirely. I forget the name.

I think I may have gone into an At Home somewhere at some point but don't remember it so it must have been really indifferent or I didn't have much time.
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Re: Kohl's To Open 100 Small Format Stores

Post by ClownLoach »

storewanderer wrote: February 20th, 2023, 9:05 pm Is At Home like, I forget what it was, but it was some concept that Builder's Square tried to have to convert stores to before they went out of business entirely. I forget the name.

I think I may have gone into an At Home somewhere at some point but don't remember it so it must have been really indifferent or I didn't have much time.
I don't recall what Builders Square tried to turn into. HomeBase tried to become House 2 Home which was pretty much like Sears' The Great Indoors concept but much smaller.

AtHome is a giant decor store probably more comparable to Hobby Lobby without the art, craft and fabric departments (no custom framing either). It used to be called Garden Ridge and was a Texas only chain. They renamed and focused on fresh/trendy color schemes well coordinated across their seasonal and regular departments. This is important if you've shopped Hobby Lobby who sells the same stale, boring items year after year with no improvement. Coupons are rare and usually just 10% with one 15% birthday reward for VIP loyalty members. They do have a discount program for licensed interior designers who I believe get 20% off across the board every day but must submit a business license or something like that to join. I think of pricing as more like HomeGoods or a EDLP model which is unusual for the category where everyone else is high-low. Nothing too expensive or luxurious. Kitchen/Bath skews more down scale than HomeGoods. They seem to like taking an entire Kmart building and when they're done you'd never have any idea it was one - high ceilings, concrete floors, bright lighting and bright blue paint.

As long as they can keep getting their hands on cheap Real Estate I think we will see them grow. Lots of dead Kmart stores nobody else would touch. I'm sure they get them for almost nothing. I suspect high rent locations would be their kryptonite. No way to pay full market rent and have this low intensity use on 80,000 to 100,000 Sq ft buildings otherwise.
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