Dive Brief:
- Kohl’s is prioritizing in-store experiences and loyalty membership for long-term growth, CEO Tom Kingsbury said Tuesday on a Q4 2023 earnings call.
- The retailer will introduce dedicated space for checkout lines at 350 stores this year, bringing the total stores with queuing fixtures to 435 chainwide, according to Kingsbury. The areas, which will be lined with potential impulse purchases, will consolidate customers who have finished shopping into smaller spaces.
- Loyalty efforts will focus on converting more shoppers to Kohl’s co-branded credit card with Capital One, Kingsbury said. Kohl’s credit card customers spend six times more annually than non-loyalty members.
Dive Insight:
Kohl’s is refining the store experience to build on changes introduced in 2023, when the retailer simplified signage and graphics and piloted its new checkout queues, according to Kingsbury.
Kohl’s isn’t the only retailer exploring store refreshes over full-scale remodels. Best Buy is taking a similar approach, though it’s focusing on expanding the parts of the floor dedicated to popular categories while reducing space for fading items.
Kingsbury believes changes to the store experience are generating a positive impact. Average sales at stores open for at least a year were the same in 2023 compared to 2022, which marked the company’s best performance since 2010.
Stores are getting the most attention, but Kohl’s isn’t ignoring the digital experience. Plans for 2024 include simplifying all communication and improving search and product recommendations for online customers, Kingsbury said.
