Kohl’s Boosts Omnichannel Capabilities

Kohl’s is stepping up its omnichannel strategy with plans to invest in its store base and enhance the capabilities of its e-commerce fulfillment network.

During the third quarter, Kohl’s said it will open four small format stores and its fifth e-commerce fulfillment center. The company also continues to make progress on its initiatives to optimize and rightsize select Kohl’s stores across the country.

Kohl’s will begin shipping from its fifth e-commerce fulfillment center in Plainfield, Indiana, this month. The 937,000-square-foot facility will be dedicated to processing, filling and shipping Kohls.com orders. The facility is equipped with state-of-the-art technology to maximize productivity, the company said.

In October 2017, Kohl’s will open four small format, 35,000-square-foot stores, adding to the eight small format Kohl’s stores opened in 2016. The four new stores will be located in North Smithfield, RI; Blue Ash, OH; East Windsor, NJ; and Montebello, CA. The small format stores are designed to be flexible and efficient, with fixtures that can be adapted by department and for localized merchandise and assortments. Customers can browse and purchase the full selection of Kohls.com merchandise via in-store kiosks. The stores also serve as pick up locations for those who opt to buy online and pick up in store.

In addition, to improve the customer experience, approximately 300 Kohl’s stores have been optimized with new interior layouts, becoming operationally smaller through balancing inventory and adjusting fixtures. By the end of 2017, nearly half of Kohl’s stores will be operationally smaller, the company said.

“Our stores remain at the core of our omnichannel strategy and we will continue to invest in them by opening smaller formats, rightsizing and optimizing our selling space and working to ensure that shopping in our stores is an engaging and inspiring experience for our customers,” said Kevin Mansell, Kohl’s chairman, chief executive officer and president. “We have set a goal to be the best-in-class omnichannel retailer and opening our fifth e-commerce distribution center will support the delivery of online orders faster and more efficiently to customers nationwide.”