Over the past few years, Menomenee Falls, Wis.-based Kohl’s Department Stores has been “right sizing” their store footprint, and now it’s looking for a way to fill that space.
With…grocery?
CEO Kevin Mansell said the company has been evaluating a list of 300 potential partners from “convenience and grocery channels” to fill the space, in an interview with CNBC.
Kohls, the king of black Friday coupon sales, and grocery?
It’s not as simple as adding food. Just think of the boxes and jars of wacky foods and trinkets at a TJ Maxx or Marshall’s. That’s questionable fare with questionable allure for most shoppers.
And neither is Kohl’s high end enough for a food hall the likes of the Kaufhaus des Westens (KaDeWe for the Fruit Logistica veterans), Harrod’s or even Eataly. Food Halls and sophisticated retail foodservice, like Kroger’s Kitchen 1883, are one of the hottest trends in high end retail, but this concept doesn’t work in my mind at a Kohl’s store.
For Kohl’s to do it right, I think they’re going to have do bring in a small format convenience or grocery that’s well-recognized with a clean grab-and-go strategy that consumers, particularly millennial consumers, already appreciate. Think Trader Joe’s or Snap Kitchen, for example.
Why is Kohl’s looking to do this, anyway? As we’ve discussed here at Produce Retailer, malls and grocery can go hand-in-hand. It’s a concept many are familiar with, especially in Europe. I can’t tell you how many grocery stores I see attached to malls and other department store-type retail.
For a department store like Kohl’s, bringing in foot traffic is key to maintaining retail sites. Having on-site grocery is a way to bring in shoppers, and keep them there long enough to grab a few extra items to their basket.
For a grocer, this is a way to add convenience and a complete shopping experience for a consumer. There’s no need to stop at the supermarket on the way home if Kohl’s has a grab and go meal to prep instead.
Whether or not it’s going to work depends on who steps up to the plate.