Kohl’s (NYSE: KSS) CEO told the media this week the company plans to partner with retailers like grocery stores or convenience stores to lease the white space left by the roughly 300 stores it has "right-sized" over the past several years.
At ICR’s conference, Kevin Mansell said the department store has created operationally smaller, more profitable stores within its roughly 87,000-square-foot boxes. That downsizing leaves unused footage, which Mansell said would benefit from traffic-generating retailers like those that sell food.
"If we had our preference, we are going first after well-capitalized companies, and preferably ones that have high traffic in grocery and convenience," Mansell said.
The Menomonee Falls, Wisconsin-based retailer has already identified "a whole list of partners" to roll out across a number of its stores.
For potential Kohl's partners, the department store brings with it strong real estate, big parking lots and its own traffic. A food and apparel duo would be able to compete against a number of retailers employing similar strategies, like Target (NYSE: TGT) and even Wal-Mart (NYSE: WMT)
Earlier this week, Kohl’s announced that, based on stronger-than-expected Holiday sales and expectations for fiscal January, the Company now expects its fiscal 2017 diluted earnings per share to be $4.10 to $4.20 versus its previous guidance of $3.72 to $3.92.
Excluding the Company's previously disclosed fourth quarter tax settlement of $30 million, diluted earnings per share is expected to be $3.98 to $4.08, compared to its prior guidance of $3.60 to $3.80.
Kohl’s shares gained 63 cents, or 1.1%, to $59.47.
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