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Kohl’s plans to add the beauty retailer Sephora at more locations.
(Photo by Bruce Bennett/Getty Images)
Kohl’s
will open about 100 smaller outlets in new markets, the company said as it unveiled plans to boost spending on its stores on Wednesday.
The stock was 12% higher on Wednesday at $40.59. Reuters reported that bidders competing to acquire
Kohl’s
are preparing to make binding offers that are lower than the bids they submitted earlier this year by at least 10% to 15% to reflect the market downturn and the U.S. retailer’s deteriorating business. Bidders include private-equity firm Sycamore Partners, brand holding firm
Brookfield Asset Management
,
according to Reuters.
Kohl’s (ticker: KSS) said over the next three years it will increase investments to “improve the store experience for customers and associates,” including the addition of beauty retailer Sephora at 850 stores locations by 2023. Over the next four years, Kohl’s will also add about 100 new, smaller format stores in “markets previously untapped by Kohl’s physical presence,” the company said.
Kohl’s didn’t disclose how much it plans to spend, but said money will go toward opening and remodeling stores and enhancing its omnichannel sales capability.
“Kohl’s began with roots as a brick-and-mortar company, and these 60 years of experience have set the company up to become a leading omnichannel retailer,” said Mark Griepentrog, Kohl’s chief property officer. “Our strong and productive off-mall store base can continuously evolve with our customer’s expectations and demand, and we see substantial opportunities to leverage our real estate in producing long-term growth.”
Write to Angela Palumbo at angela.palumbo@dowjones.com
