Kohl’s Looks to Convenience, Grocery Stores to Fill Vacant Space

The department store wants to partner with retailers to lease space inside its stores.
January 12, 2018

JERSEY CITY, N.J. – Kohl’s has space in around 300 stores after “right-sizing” them, and is courting convenience and grocery stores to use those areas, CNBC reports. The department store downsized its merchandise area within the 87,000-square-foot store to create smaller, more profitable locations, leaving unused space it’s now looking to fill, according to CEO Kevin Mansell.

“If we had our preference, we are going first after well-capitalized companies, and preferably ones that have high traffic in grocery and convenience,” he said. “We are more apt to identify strong partners and then build a pathway with them through this pilot phase.”

For these potential partners, Kohl’s offers plenty of parking, foot traffic and good locations. By adding a convenience store or supermarket, the dual location would be better positioned to compete against retailers like Walmart or Target.

Mansell cautioned that not all of the 300 stores with space available would lease the area to other retailers. Kohl’s also could join with retailers on group rollouts or as single ones. The department store already partners with Amazon, selling branded products and accepting returns.

“We want a partner, ideally in food or convenience, to help drive traffic,” Mansell said. The company will announce plans during the March earnings call.