The plan was announced at this year’s annual investor meeting in what is believed to be a response to increasing influence from investors. The department chain’s plan to expand includes opening 100 small-format outlets over a four-year period, and Sephora-branded shops will be expanded with 850 new outlets.
Michael Gass, the current CEP for Kohl’s, said:
“Kohl’s is undergoing a significant transformation of our business model and brand to be the retailer of choice for the active and casual lifestyle.”
A major part of the plan involves turning Sephora into a $2bn brand. Other changes that consumers can expect to see include self-serve options for buying online, facilities for in-store pickups in every location, and self-serve check-out and returns counters. Poster printing can help people identify which counter to be served at.
A partnership with Amazon will allow shoppers to return products bought from the e-retail site at Kohl’s stores. The Kohl’s management believes that this will help them acquire millions of new customers. In time, the company hopes its own online business will reach an $8bn valuation.
Recent offers had been made to buy the brand, but Kohl’s has instead opted to use a shareholder rights plan that will protect investors from being bought out.