Kohls 4Q16 Earnings Call Notes

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Kevin Mansell

Importance of store portfolio remains

“Our overall perspective though and the importance of our store portfolio remains the same. We believe stores are very important and critical component of our future success, and we’re committed to leverage them to their full extent. There’s great power in stores in an omnichannel world. We also know, however, that the average sales per store have fallen as online sales have risen. And so an ongoing rigorous process for store performance review is critical to long-term success. ”

Footprint of stores not necessarily going down

“I mean, overall, Oliver, I think we’re leaving you with, hopefully, the impression we think footprint in terms of number of stores is important, and we don’t necessarily see that going down. It actually, possibly could even go up.
Second, they’re going to be smaller stores for sure. And the way they’re going to be smaller is to use technology to enable process inside the store more efficiently and fulfillment inside the store more efficiently, and use our speed initiative and our sourcing strategies and our localization initiatives to be able to make better decisions on which brands and which categories are emphasized more in a smaller footprint.”