Kohl’s Hits 1,000 Units; Timing Unfortunate

We saw this article on Kohl’s hitting the 1,000-store mark and had to wonder how much celebration there is for this kind of milestone right now.

The retailer had plans to open 1,400 stores by 2012, but due to cutbacks in expansion that have plagued nearly every major chain, this looks less likely, according to the Journal Sentinel. Management is now saying it is not releasing expansion plans beyond next year, when 50 to 60 locations are in the works.

Kohl’s, like other chains, is experiencing same-store sales slides. In August, they fell 5.6% year over year and 4.6% in the third quarter. But in these times, those numbers aren’t too bad. The chain still posted a hefty $236 million net income during its Q3, though down from the previous year, and its stock closed at $46 yesterday, well under a 52-week high of nearly $64…but hey. Things could be way worse, right?

7 Responses to “Kohl’s Hits 1,000 Units; Timing Unfortunate”

  1. 1 Carl Cronan October 1, 2008 at 9:01 am

    Talk about bad timing! Kohl’s opened a bunch of stores throughout Florida over the last few years, with many done on the same day, and a bunch more are set to open this month. Like so many others, it moved down here just in time for the housing bubble to deflate. But Kohl’s has good merchandise at good prices, which may be their saving grace in this economy.

  2. 2 James October 1, 2008 at 3:52 pm

    I agree, this is a company that should do well in this economy. There is nothing wrong with being hyper-selective about new locations and searching for efficencies in operations as they go forward.

  3. 3 Nancy October 2, 2008 at 10:38 am

    Several of my friends have stopped shopping at Dillards and Stein Mart and are now shopping at Kohls. They offer more variety at a lower price. Besides, women’s fashions change all the time. If you get tired of something you bought at Kohls or it is out of style, you don’t have a lot of money invested.

  4. 4 E October 3, 2008 at 8:24 am

    Kohl’s is smart; retrenching a bit,with their management looking for “bargains” — if other chains/individual stores go into distress over the next 12-18 months, they can cherry pick new locations at-will, make good deals, and they’re not commited to managing a “new store opening” expectation (either from themselves or retail investors at large) that Kohl’s can’t define or project long-term owing to their segment flux.

  5. 5 E October 7, 2008 at 9:46 am

    Kohl’s is playing it smart. They executive management is letting the world (stockholders, employess, the retail market at-large) know it knows how to respond to the twisted market.

    They’re not projecting anything beyond next year (managing expectations!). The expansion — wait and see. As other stores/chains become distressed, Kohl’s can pretty much cherry pick locations for growth at non-premium leases/prices.

  6. 6 MallMaven October 7, 2008 at 1:11 pm

    Hmmm. Interesting, “the company…. not releasing expansion plans beyond next year.” That sounds odd. Most companies will at least let you know where they are headed. Maybe there’s problems with the sales, profit, or something else, and they don’t want to get into it…. just a thought. Who knows???

  7. 7 aretailworker March 5, 2010 at 9:58 am

    Kohl’s is going down hill fast. In a bad economy, they seem like a good retailer as people flock to them due to low prices.

    But they cut their labor budget to do so, leaving most stores unorganized, messy, and their employees less than happy.

    In the end, when the economy improves, kohls will fail. When people start to get a little more money in their pockets they will remember the horrible experience they had to go through with kohls to get that bargain and go shop elsewhere.

    In the end, Kohls will be a thrift store.

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