topic Re: Kohls Closing 18 Stores!!! in Community Chat

Kohls Closing 18 Stores!!!

ECBG — Thu, 25 Feb 2016 23:22:56 GMT

Just ran across this:

"The department store chain reported a 20% drop in fourth quarter profit on Thursday, and said it expects relatively flat sales for the year.

The stores represent less than 1% of total sales, and closing them is expected to cut costs by roughly $45 million, the company said.

The retailer said it would provide a list of which stores are closing in late March."

Re: Kohls Closing 18 Stores!!!

esmeraldagooch — Thu, 25 Feb 2016 23:28:07 GMT

Not surprised. Many others are closing too. Orders are not there and shelves are not filled.

-Wal-Mart is closing 269 stores, including 154 inside the United States.

-K-Mart is closing down more than two dozen stores over the next several months.

-J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.

-Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.

-The Gap is in the process of closing 175 stores in North America.

-Aeropostale is in the process of closing 84 stores all across America.

-Finish Line has announced that 150 stores will be shutting down over the next few years.

-Sears has shut down about 600 stores over the past year or so, but sales at the stores that remain open continue to fall precipitously.

But these store closings are only part of the story.

All over the country, shoppers are noticing bare shelves and alarmingly low inventory levels. This is happening even at the largest and most prominent retailers

Re: Kohls Closing 18 Stores!!!

Snowpuppy — Thu, 25 Feb 2016 23:38:52 GMT

As Esmerelda said, comes as no surprise. They didn't say how many people would lose their part time low wage jobs.

Poor folk have no more money to spend

Re: Kohls Closing 18 Stores!!!

SahmIam — Thu, 25 Feb 2016 23:45:12 GMT

I feel ONLY for the employees who will lose their jobs. Sadly, the upper-mucks will walk away with a great package or will still have their job making their same salary.

I worked for an upscale retailer when I was in undergrad; I watched it go under slowly and wrote a few papers on how to destroy a well-known, 100 plus year old retailer. What really angered me was the CEO and the majority of executives all walked away with a fantastic severance package. They collected their money even as they laid off hundred of employees (and then fired them) kicked to the curb loyal 30 plus years employees, took away their promised benefits/retirement packages and well.... there it is.

Re: Kohls Closing 18 Stores!!!

Q4u — Thu, 25 Feb 2016 23:45:19 GMT

Yes but, yes but.... we're told all is well in employment-land and our economy is growing and doing really really well......

Re: Kohls Closing 18 Stores!!!

scotnovel — Thu, 25 Feb 2016 23:48:48 GMT

@esmeraldagooch wrote:
Not surprised. Many others are closing too. Orders are not there and shelves are not filled.
-Wal-Mart is closing 269 stores, including 154 inside the United States.
-K-Mart is closing down more than two dozen stores over the next several months.
-J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.
-Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.
-The Gap is in the process of closing 175 stores in North America.
-Aeropostale is in the process of closing 84 stores all across America.
-Finish Line has announced that 150 stores will be shutting down over the next few years.
-Sears has shut down about 600 stores over the past year or so, but sales at the stores that remain open continue to fall precipitously.
But these store closings are only part of the story.
All over the country, shoppers are noticing bare shelves and alarmingly low inventory levels. This is happening even at the largest and most prominent retailers

Do you have anything to back up this statement? I've been in a large mall recently and a few other national chain stores and have not seen any bare shelves or low inventory. Also even the Kmart in my small town has packed shelves. Friends of mine in Dallas haven't noticed any issues with store inventories either.

Re: Kohls Closing 18 Stores!!!

Noel7 — Thu, 25 Feb 2016 23:51:45 GMT

@Q4u wrote:
Yes but, yes but.... we're told all is well in employment-land and our economy is growing and doing really really well......

*****************************

The economy is doing well.

There have been numerous reports that department stores are losing customers to places like Amazon and Costco.

Re: Kohls Closing 18 Stores!!!

BornToShop — Thu, 25 Feb 2016 23:52:21 GMT

...and so the saga continues for the demise of the bricks & mortar stores. What is sad to me is, they are cannibalizing their own companies when they have a website in conjunction as well. The web prices simply cannot be met & then expect to remain in business for the long term haul. According to my friend, It is amazing how customers buy online but return it at the B & M store. She is sick & tired of hearing Amazon. So, here we are, sitting at home in our jammys at our computers doing the click n' send thing. What will all this look like in 10 years, or maybe sooner?!?

Re: Kohls Closing 18 Stores!!!

Noel7 — Thu, 25 Feb 2016 23:55:57 GMT

@scotnovel wrote:
@esmeraldagooch wrote:
Not surprised. Many others are closing too. Orders are not there and shelves are not filled.
-Wal-Mart is closing 269 stores, including 154 inside the United States.
-K-Mart is closing down more than two dozen stores over the next several months.
-J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.
-Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.
-The Gap is in the process of closing 175 stores in North America.
-Aeropostale is in the process of closing 84 stores all across America.
-Finish Line has announced that 150 stores will be shutting down over the next few years.
-Sears has shut down about 600 stores over the past year or so, but sales at the stores that remain open continue to fall precipitously.
But these store closings are only part of the story.
All over the country, shoppers are noticing bare shelves and alarmingly low inventory levels. This is happening even at the largest and most prominent retailers
Do you have anything to back up this statement? I've been in a large mall recently and a few other national chain stores and have not seen any bare shelves or low inventory. Also even the Kmart in my small town has packed shelves. Friends of mine in Dallas haven't noticed any issues with store inventories either.

**********************************************

@scotnovel

We go through the same false conclusions every time a store closes and/or expands... a certain few trying to make it political.

There has been a major change, as you probably know, from old fashioned department stores to buyers switching to Amazon and places like Costco because they are less expensive and less time consuming. People are now shopping online.

Plus the stories that are just false, such as the same person saying the Oreo plants in the US have closed and gone to Mexico. NOT TRUE.

Re: Kohls Closing 18 Stores!!!

Noel7 — Fri, 26 Feb 2016 00:00:36 GMT

What's really going on:

"Meanwhile, the Wisconsin-based retailer said that it will pilot a smaller, 35,000-square-foot Kohl's in seven U.S. markets, an additional two off-price stores and enter the outlet space with 12 Fila stores."

"The 18 stores that Kohl's will close this summer are expected to generate $55 million in savings, and represent less than 1 percent of its total sales."

http://www.nbcnews.com/business/business-news/kohl-s-closing-18-locations-planning-smaller-format-stores-n525806

Re: Kohls Closing 18 Stores!!!

Noel7 — Fri, 26 Feb 2016 00:03:50 GMT

It's the SAME story: it's the underperforming stores that are going.

We see this all the time. Why it seems like Armageddon to some, I do not know. It's basic business practice.

Re: Kohls Closing 18 Stores!!!

Moonchilde — Fri, 26 Feb 2016 00:17:47 GMT

All that's happening is that more and more people are shopping online, so fewer large b&m stores are needed. Instead of having 2-4 stores in a geographical area that no longer supports that much in-store shopping, they will have 1-2.

A few years ago, quite a few retailers were caught off-guard with the online competition and lagged in creating their own online stores to the point where they couldn't recover and went under.

The retailers that are left are being very proactive now and are pruning where things need to be pruned, AS they need to be pruned, to stay in the black. They close underperforming stores that cost them money. They're not falling apart, they're operating smarter. Some won't make it (surprised K-Mart hasn't folded), and some will probably only survive in modified form (Sears, JC Penney). I can certainly see Penneys going before Kohls, and the difference is management. Kohls is on top of things, and it's been too little, too late for Penneys.

Re: Kohls Closing 18 Stores!!!

JustJazzmom — Fri, 26 Feb 2016 00:27:10 GMT

Sears has been guilty of not modernizing their stores (same as K Mart). It's boring and looking tired when I visit Sears. I go into JCP and its brighter inside, there are always new items being sold. Sears is going to go under within the next 5-10 years if they do not change the interiors of their stores to make them more consumer friendly to shoppers.

BTW, both the K Mart and Sears websites are awful. Search engines do not work properly there. Whoever they have hired to do their website should be fired. The website looks as tired as their B&M stores.

Re: Kohls Closing 18 Stores!!!

SeaMaiden — Fri, 26 Feb 2016 00:38:48 GMT

I do all my shopping on line. I have never stepped foot in a Kohls or any other store besides a grocery store. Maybe that is why stores are shutting down? I think it is the way of the future.

Re: Kohls Closing 18 Stores!!!

brii — Fri, 26 Feb 2016 00:40:25 GMT

Two things are hurting retail:

1. Internest sales

2. Returns from internet purchases to retail stores

Re: Kohls Closing 18 Stores!!!

gidgetgh — Fri, 26 Feb 2016 00:42:26 GMT

SeaMaiden wrote:

I do all my shopping on line. I have never stepped foot in a Kohls or any other store besides a grocery store. Maybe that is why stores are shutting down? I think it is the way of the future.

My husband wishes I'd never set foot in a store other than the grocery store.

Re: Kohls Closing 18 Stores!!!

physicsnut — Fri, 26 Feb 2016 00:54:18 GMT

@brii wrote:
Two things are hurting retail:

1. Internest sales

2. Returns from internet purchases to retail stores

Yes, all the returns go against the store the customer returns it to which is not fair. If you buy online, you should have to return by shipping it back to the original order venue. By returning it to the store (say Kohls for instance) the returns go against the daily sales goals. While convenient for customers, I do think if you buy online you should only be able to return your items the same way. My neighbor is a Kohls manager and he says the online returns kill the store goals. People order so much, return everything -and then there is the shopoholic returning everything she orders. He says it is mostly women who do this. What a shame. The only time I have returned something to a brick and morter store is if was damaged in shipping. I hate to return items period. I was out shopping today and a woman returned over 500.00 as soon as the doors opened. Not a good way to start the business. People need to thing before they buy! These returns hurt stores!

Re: Kohls Closing 18 Stores!!!

cotto22 — Fri, 26 Feb 2016 00:56:11 GMT

Brick and mortar stores will have to step up their game to compete with the convenience and inventory that online vendors have. If they cannot provide the personalized service or atmosphere that will make us go into their stores, we will not do so. I have been appalled at the mess I see at some b&m stores, especially Macy's, and spent hardly any money there this Christmas except on some nice glassware for gifts. Much of the time, the apparel sections are filled to the brim with racks and racks of messy disorganized clearance clothes. I don't enjoy pawing through clearance racks of clothes unless they are really nice designer clothes at a super discount! And that is clearly not what Macy's was offering.

As far as the health of the economy, I think it depends on what you are looking at. If you are involved with any aspect of gas and oil, you are hurting right now, and it is going to get worse before it gets better. And the industries that supply the gas and oil employees will be hurting soon too. The rest of the country probably has not seen this, but here in Houston, it is very evident.

Re: Kohls Closing 18 Stores!!!

brii — Fri, 26 Feb 2016 00:56:13 GMT

I think a lot of people like the convenience of returning to the store.

I don't think it should count against the store. There should be a house account set up for internet returns...

Re: Kohls Closing 18 Stores!!!

physicsnut — Fri, 26 Feb 2016 01:01:49 GMT

@brii wrote:
I think a lot of people like the convenience of returning to the store.

I don't think it should count against the store. There should be a house account set up for internet returns...

that would be nice be it doesn't work that way. The returns count against the store you return it to . I wish people who order online would think carefully before they go crazy and order online from boredom at home. My store manager friend says there are a LOT of shopoholics who do this constantly and it has really affected his store daily sales goals.