If you shop at Kohl, prepare for these major changes
A new merger can affect the plans that the department store has set up.
The department stores were among the hardest struck by the Pandemic COVID-19, when the household orders forced many of us to go to online purchases.Kohl's is one of the retailers Always working hard to bounce back, which has prompted the company to start new plans in recent months. While Kohl works to make internal improvements, other forces are at stake, which could affect your shopping experience in the end. Read more to find out more about the changes that could come to your local department store.
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Kohl can be purchased by a major competitor.
Buyers will be interested in learning that two long -standing competitors could unite their strengths. As indicated byThe New York Post, a source said that the owners of JCPENNEY - Simon Property and Brookfield Asset Management - made an offer ofbuy kohl For nearly $ 8.6 billion. If you are purchased, you can expect changes in the way Kohl is executed.
The announcement comes two years after JCPENNEY was bought for $ 1 billion per Simon and Brookfield in 2020, after the bankruptcy of the department store. Following the pandemic, JCPENNEY ended up with only 689 stores, down nearly 1,110 stores in 2012.
The news of the acquisition was beneficial for Kohl's shares, which saw a bump of 5.3% at $ 60.39 on April 25, increasing compared to the end of Friday by $ 57.36. Simon and Brookfield would have offered $ 68 per share,The New York PostAccording to the source, even ifKohl stock did not exchange above $ 65 in almost three years, according to Bloomberg.
If the agreement takes place, it can thwart the plans announced by Kohl earlier this year.
In February 2022, Kohl revealed plansAdd the Sephora stores to 400 of its stores, as indicated byUSA today, Current replacementBeauty Department in Store. After joining forces in 2021, the two companies opened 200 of these small beauty stores in Kohl stores the same year.
If you were impatiently waiting for this addition to your local Kohl store, you may be disappointed to learn that JCPENNEY's acquisition could thwart this plan. According toThe New York Post, a source said that if the agreement took place, Kohl's Will Nix provides from the Sephora concession. It was not reported why Sephora stores would no longer be in the mixture, and it was not clear what would happen to existing stores.
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The purchase "will rationalize operations" for both brands.
A source would have saidThe New York Post That thanks to the acquisition, operations will be rationalized for Kohl and JCPENNEY, and the costs will be reduced by almost $ 1 billion over the next three years.AE0FCC31AE342FD3A1346EBB1F342FCB
However, the source said that the new "business parents" will keep the two separate brands, and Simon and Brookfield will employ a single management team to operate JCPENNEY and KOHL at the start of the merger. All private clothes will also be made by the same internal label, according to the source.
There have been discussions on the sale of Kohl for several months.
Kohl's faced current pressures in 2022. Investors, namely Macélum Advisors (which holds a 5.4% stake in the company), prompted the department store to be sold earlier this year. In the middle of the continuous call for a sale, Macellum tried to take control ofKohl's painting, Reported Reuters, accusing the board of directors of "putting his thumb on the scale to keep Kohl bogged down in operational mediocrity".
As indicated byThe New York Times In February, Kohl had hired Pjt Partners and Goldman Sachs "to develop any interest" on the sale, afterRejection of buying approaches To be too low. In March 2022, Kohl's said Goldman had been in talks with more than 20 potential buyers, Reuters reported.
