With fears of contracting the virus continuing to dictate consumers’ shopping behaviors, department store chains are struggling to improve their brick and mortar sales. For one, Kohl’s saw its quarterly net sales decline by 13.3 percent to $3.78 billion as fewer customers shopped for apparel at its store locations, which was higher than the 11.39 percent decline that analysts had expected.
Overall, the company saw a net loss of $12 million, which equates to 8 cents per share. According to Reuters, in Q3 last year, the company had reported a profit of $123 million, or 78 cents per share.
Still, the company saw its stock value surge by 5 percent yesterday after Chief Executive Michelle Gass detailed out the company’s turnaround plan to expand its business to offer activewear and personal care in 2021. Activewear and personal care have both proven to be high growth, high return segments for several other retailers.
“Some would call this the homebody economy, with people spending more time at home,” Gass said. “It’s growing in importance. … And we’ve established ourselves as an active destination for the last five years, that we’re going to take to a whole new level.”
The company has been adding more casual and activewear brands to its inventory. Land’s End is one such label that the company has been selling in brick and mortar locations. The retailer plans to sell the entire Land’s End catalog online and in twice as many locations next year, offering it in 300 stores.
Kohl’s has also been working on ramping up its beauty business. It is currently testing an in-store shop called Wellness Market across 50 locations, which offers personal care and baby products and pet items.