Good Lifestyle

Big store Shopping is not what it was in the past, largely thanks to the fall of shopping centers and the rise of online retail sale. Kohl's is one of the many companies that have reacted to changing times, moving to a "more targeted lifestyle concept" in 2022. But even with a new business strategy at stake in recent years, it seems that The retailer is still struggling to attract customers. New data show that buyers abandon Kohl, with down sales for the eighth consecutive trimester , Reported Reuters.

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In a Press release Describing Kohl's financial results, the company announced that net sales in the fourth quarter of 2023 were down 1.1% compared to the same previous period. Comparable sales (sales with comparable stores) also fell 4.3% compared to the same time in 2022. For 2023 overall, net sales fell by 3.4%, while comparable sales decreased 4.7%.

In addition, digital sales decreased by around 10% in the fourth quarter, the CEO of Kohl Tom Kingsbury said on March 12 profit call . However, he pointed out that these sales improved as the quarter progressed. Income did not meet expectations In addition, at $ 5.71 billion, compared to $ 5.73 billion, Yahoo Finance reported.

According to Bloomberg, the distribution sector Overall, it is struggling with economic uncertainty created by higher interest rates and inflation. But while some big names like Gap and Abercrombie have maintained customer loyalty, Kohl's - like its competitors Macy And Northern - is in trouble with its customers. Instead of heading to department stores or "lifestyle" stores, buyers of good deals and those who have a budget take their business to non -cost retailers like T.J. Maxx, Marshalls and Burlington, reported Reuters.

In light of the results, Kohl's actions fell in pre-commercial exchanges on March 12, Yahoo Finance Reporter Madison Mills said in a live appearance of Yahoo Finance.

"Consumers do not continue to spend in this store, and that is why this impression of income did not obtain good reception of the street," said Mills. "We have seen that comparable stores have lacked estimates and their long-term advice was conservative, so some fundamentals there so that the company is not doing so well."

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Unfortunately for Kohl's, experts say that it is not clear if customers will return. Mills stressed that the "big question" surrounding the retailer is to become an "essential store in an environment where we continue to see people having this strength in their expenses". (In mid-March, it appeared that customers passed, that they could afford it, or if that forced them to take another job, said Mills.)

"They do not spend this money at Kohl, and it will be a problem for this brand in the future, especially when we see market share being taken by large retailers such as a Walmart and a target still, go from 'Before, "she said.

That said, Kohl's has a positive perspective in the future in 2024 and plans (hopefully) to stimulate sales. In the press release, Kohl described plans to allocate around $ 500 million to extend its partnership with Sephora.

In addition, Kohl’s is launching a new partnership with Babies "R" US to "expand our presence in the baby category," Kingsbury said when calling the results. The retailer plans to open the "R" US Shops babies in the 200 Kohl stores this fall.

"Looking towards the future, we focus incredibly on the supply of comparable sales growth in 2024. Our strategic initiatives are positioned to gain momentum and contribute more significantly, and we will associate with babies To extend our significant presence represents a convincing white space opportunity for Kohl, "Kingsbury said in the press release.

He concluded: "Thanks to our collective efforts, Kohl is increasingly relevant for customers, which strengthens our conviction in our longer -term opportunity."