Department store chain Kohl’s said it aims to open 100 new stores over the next four years.
The new locations are part of a bid to increase sales by a low-single-digit percentage annually, the company said.
The retailer plans to open the new small-format stores in the next four years and expand its partnership with Sephora to be a $2 billion business, among other moves.
Kohl’s announced its long-term goals on Monday ahead of the company’s annual investor meeting. The chain faces increasing pressure from activist investors. Kohl's is on track to have Sephora shops in 850 of its stores by next year.
"We have fundamentally restructured our business to drive sustainable and profitable growth, while providing a strong return to shareholders,” said Michelle Gass, Kohl’s chief executive officer. “We have laid the foundation for our winning strategy and have started to implement key initiatives that will scale and accelerate our growth in the years ahead.
While many department stores have seen faltering sales -- largely driven by the growth of e-commerce and further pushed to the brink by COVID -- Kohl's hopes to take a different approach by hyper-localizing their new stores.
According to a press release, Kohl's plans on increasing its data science capabilities to track the needs of local customers. The department store chain also plans on focusing their clothing options for casual and active lifestyles, a market driven by more and more employees working from home.
Kohl's also plans on increasing its Kohl's Card rewards to 7.5% every day, and introducing a co-branded credit card in 2023.
