Kohl's is about to get cheaper
Business Insider/Jessica Tyler
- Kohl's is planning to slash prices and offer more promotions, with a heavy focus on the home category.
- "We recognize that we have to be more aggressive," Kohl's CEO Michelle Gass said during an earnings call on Tuesday.
- But the "single biggest initiative of the year" for Kohl's is the rollout of its Amazon returns program, Gass said.
- Kohl's reported a shocking 3.4% decline in same-store sales during the first quarter, versus the 0.1% drop that Wall Street analysts were expecting.
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Kohl's is planning to slash prices and offer more promotions in response to declining sales, company executives said Tuesday."We recognize that we have to be more aggressive," Kohl's CEO Michelle Gass said on an earnings call Tuesday.Advertisement
She said the company is taking a "surgical approach" to pricing, rather than executing across-the-board cuts, and highlighted the home category as an area that Kohl's is most heavily targeting.
Gass revealed the planned pricing changes after the company reported a shocking 3.4% decline in same-store sales during the first quarter, versus the 0.1% drop that Wall Street analysts were expecting.Read more: You can now return Amazon orders for free at all Kohl's stores - here's how it works
She blamed the disappointing performance on unseasonable weather, soft sales in the home category, and ineffective promotions.Higher tariffs could complicate the company's plans to lower prices. But she said the company will avoid passing higher costs onto consumers."Our teams are working very closely with our vendors to make sure that collectively we have a strong plan" to address tariffs, she said. "We're looking to make sure we can protect the customer and protect our market share."Advertisement
In addition to more competitive pricing, Kohl's is also looking to its new partnership with Amazon to drive up traffic and sales. The partnership will allow customers to make Amazon returns at Kohl's stores nationwide.
Gass said the company is planning to hire more workers in stores and logistics to support the initiative."The nationwide rollout of the Amazon returns program is the single biggest initiative of the year," Gass said. "It's all about driving traffic."Advertisement