Dive Brief:
- Kohl’s has expanded its holiday assortment and plans to offer about twice as many gift options this year, according to a Thursday press release. As part of that effort, the retailer is touting a new Kohl’s Value Gift Shop, which offers stocking stuffers and small gifts, with the majority of gifts under $5 and “hundreds” under $10.
- Holiday season decor will also receive prominent front-of-store placement and offerings in the category have expanded by 50%, the company said. The changes include a broader selection of Christmas trees, lighting, ornaments and inflatables. Kohl’s offering of holiday cards and gift wrap will also expand by nearly 50%.
- Additionally, the retailer will have more gifting displays throughout its stores and gift sets across categories, including twice as many Sephora at Kohl’s gift sets. Kohl’s will offer jewelry gifts under $25 and “thousands” of toys under $20, according to the company.
Dive Insight:
Kohl’s wrapped up a three-day holiday kickoff sales event on Wednesday. Now, days later, the company is making another push to position itself as a multicategory holiday shopping destination that has something for everyone.
“Kohl’s understands how busy the holiday season is for families, so we’re ready to help with everything they need to prepare and celebrate from decorating to gifting and hosting,” Nick Jones, Kohl’s chief merchandising officer, said in a statement. “Our expanded assortment across categories further positions Kohl’s as a destination for gifting at great prices.”
In other firsts, this year customers can use Instacart to shop and receive same-day delivery in addition to free in-store pickup. Babies R Us shop-in-shops will also mark their inaugural season at 200 Kohl’s stores nationwide and on the company’s e-commerce site. Throughout the year, Kohl’s added new brands in men’s, women’s and kids’ apparel and now features dedicated dress shops in all of its approximately 1,100 stores in 49 states. The department store also said it has a larger assortment of pet, tech, personal care, kitchen and novelty items this year.
While many of the new initiatives and changes are a step in the right direction, the company’s very low volume growth will make for a challenging holiday season at Kohl’s, Neil Saunders, managing director of GlobalData, said in emailed comments to Retail Dive.
“Kohl’s desperately needs a win this holiday season,” Saunders said. “The chain has been a chronic underperformer in the retail sector and has lost a significant number of customers and a huge amount of market share. It needs to show investors that it can stem this tide.”
CEO Tom Kingsbury said he was “disappointed” with the company’s Q2 performance, which saw a year-over-year sales decline of 4.2% and a comparable sales decline of 5.1%.
Another popular promotion, $15 for $50 in Kohl’s Cash, is set to return in early November and during Black Friday Week, running through Cyber Monday. Stores will be closed on Thanksgiving so that employees can enjoy the holiday. A series of in-store events, giveaways and sweepstakes is set to launch on Black Friday and run through December.
But Saunders said an expanded assortment and introducing more value through key price points are only part of the solution to improve the business. “Kohl’s also needs to improve its store performance. It talks of magic in stores but, unfortunately, most of its shops have more of an air of bah humbug than festive jollity. Kohl’s needs to demonstrate it can execute well.”
