Kohl’s recently shared the company’s new strategic framework with the investment community, including new initiatives to position the company for long-term success. As part of its strategy, Kohl’s said it has set a new vision: to be the most trusted retailer of choice for the active and casual lifestyle.
The strategy, informed by customer insights, is designed to drive top-line growth and expand operating margin, supported by disciplined capital management and an agile organizational culture, to create long-term shareholder value, the company said.
“Kohl’s is uniquely positioned to be the retailer of choice for the active and casual lifestyle for the entire family with our accessible and aspirational brand portfolio, seamless omnichannel experience, and industry-leading loyalty program. We are leaning into categories where we have demonstrated momentum and will drive more growth opportunities into the future. The recent environment has accelerated our path forward and presented a unique opportunity to capture market share from retail industry disruption,” said Michelle Gass, Kohl’s CEO. “We have shown our ability to navigate through the COVID-19 crisis by focusing on customer and associate safety, operational efficiency and ensuring our financial resiliency. We are well positioned to both continue to manage our business through the pandemic and to take full advantage of a brighter future ahead.”
To accomplish the vision to be the most trusted retailer of choice for the active and casual lifestyle, Kohl’s will focus on three key areas that will drive top-line growth:
- Be the destination for active, casual and beauty for the entire family from the most trusted brands, always delivering quality and discovery. This includes expanding in active and outdoor categories, reigniting growth in the women’s category, building a sizable beauty business, and driving category productivity and inventory turn.
- Lead with loyalty and value through a best-in-class rewards program, including Kohl’s Cash, Kohl’s Rewards and Kohl’s Charge Card. This includes driving productivity through deeper engagement with customers and continuing to deliver personalized experiences.
- Offer a differentiated omnichannel experience that is easy and inviting, no matter how customers want to shop. This includes leveraging Kohl’s store base in an evolving landscape, modernizing the store experience, continuing digital growth, and further enhancing omnichannel capabilities.
The company said it is also focused on increasing profitability with a goal of expanding its operating margin to 7% to 8%. Efforts include an end-to-end supply chain transformation, sourcing optimization and SG&A expense efficiency across store labor, marketing and technology.