Kohl's Continues Its Brilliant Downsizing Initiative

Kohl's Continues Its Brilliant Downsizing Initiative

Kohl's (NYSE: KSS) has been one of the best-performing department store companies in the U.S. during 2017. That's not to say it has been immune from the sales challenges pressuring the rest of the industry. Indeed, comparable-store sales fell 2.7% in the first quarter and 0.4% in the second quarter. Nevertheless, earnings per share increased on a year-over-year basis in both quarters, including a 26% jump in Q1.

A big reason for Kohl's profit turnaround is an initiative to redesign many of its stores to better match demand in its markets. On Tuesday, the company updated investors on how this extremely important project is progressing.

Historically, nearly all of Kohl's stores were designed in line with a single store prototype. The typical Kohl's store was about 88,000 square feet. It was located in a strip mall on a busy street. It had two entryways in the front and a "racetrack" design: i.e. a wide aisle loops around the store's circumference. Merchandise was arranged in a similar way in each store, too.

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Source: Fool.com