Tailored inventory assortments help improve profitability

Localization is an important part of inventory management at Kohl’s. With a goal to significantly reduce inventory over multiple years — it’s an effort that has transformed the way Kohl’s stores are merchandised. Gone are the days when racks were stocked based on broad market clusters that were largely based on the climate of the region. Instead, Kohl’s is using analytics to study customer behavior in individual stores to edit and tailor our assortment to the brands and categories they want to see and buy. Kohl’s is putting customers first by making our store more relevant to them.
Through localization, assortments have been tailored to the unique needs of each Kohl’s store, with 95% of assortments localized by store.
Over the last two years, Kohl’s has rolled out localization and through the process, we’re learning and improving strategies, expanding the scope to include omnichannel and shifting focus to the strategies that show the best results.