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Kohl's makeover does not work – CNN



The company announced on Tuesday that sales in stores open at least one year in the last quarter increased by 0.4%. Kohl's profit declined 24% year-over-year in the quarter, and the retailer lowered its outlook for vacation purchases. It was the second time that Kohl's forecast was cut this year.

CEO Michelle Gass tried to use the results as much as possible. "We are entering the vacation period with momentum," she said in a prepared statement.

It has done little to appease investors. Kohl's ( KSS ) stock fell on Tuesday. Stocks even fell 17% in early trading. Macy's M ) and Nordstrom ( JWN ) also returned. These two chains will report profits later this week.

The results suggest that Kohl's rework strategies are falling behind.

Despite Kohl's attempts to reinvent himself to adapt to profound changes in the retail industry, the company still can. & # 39; Avoid the heavy pressure on department stores by Amazon ( AMZN ) Online Brands, Big Box Dealers and Discounters like TJMaxx. Since 201
1, according to a UBS estimate, Kohl & # 39; s lost 17% of its market share at the beginning of the year.
And TJX ( TJX ) to which TJMaxx and Marshalls announced on Tuesday that sales in stores that have opened at least a year in the last quarter were up 4% has risen. The company has raised its forecasts for the rest of the year.

Gass, the CEO of Kohl, has taken a proactive approach to redesign the retailer's more than 1,150 stores for the online shopping era. Kohl's is considered by many analysts to be better positioned than Macy's, JCPenney and other brands in shopping malls, as most Kohl's stores are not in shopping malls.

Kohl & # 39; s has teamed up with Amazon to offer free returns to store customers. Gass said earlier this year, the launch of Amazon in all stores was the company's "single biggest initiative" of the year.

In addition, some stores were scaled down and the additional space leased to companies such as Aldi and Aldi Planet Fitness ( PLNT ) . It has also tested concepts like "outfit bars" to draw millennials. Outfit bars let women "search" for work and social occasions in one place.

But to survive, Kohls may need to get bigger.


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