Kevin Mansell – Kohl’s Corp.
Goal to be a best in class omnichannel retailer
“Looking longer term, the results of the quarter and the year continue to reinforce to us that our goal to be a best-in-class omnichannel retailer is the right path for success. Our two priorities remain the same, and all areas of the company are focused on them: driving traffic and operational excellence. Our success in achieving our goals on those priorities will be driven by improvement in each of our key initiatives that are part of that strategic framework.”
Omnichannel impacted by store closures
“On the store closure analysis, as we indicated at the end of last year, there were some pretty consistent findings through that period of closure. And generally, what I would say is that the retention of sales from closed stores by other Kohl’s stores in the same trade area have continued around the same rate, which is around 30% or so. Of course, they range, but generally around 30%; that there is an impact on a market when you have fewer stores in it and share of mine is therefore decreased, and as a result, those areas where we’ve closed stores, the rate of growth in our omnichannel business has been a little less and that was a finding early on, and it continues to be so.”
Store closures have reinforced the need for a physical footprint
“Everything that we’ve learned from that store closure pilot has been that reinforcing the importance of a great physical footprint. And we’ve said over and over again, and we have seen nothing that doesn’t support this. In fact, I think the thesis is growing stronger. Certainly, probably smaller stores, certainly, as I alluded to, we are testing Your Store, which is a concept to what does the store look like in the future both operationally and from a customer experience standpoint, they’re going to look different. But I don’t see store closures has a meaningful impact anywhere in the near future.”