Evolving consumer trends create continued growth opportunities
Last fall, Kohl’s debuted a new strategic vision to be the most trusted retailer of choice for the active and casual lifestyle. This week, as Kohl’s reported earnings results for the first quarter 2021, we are confident that our strategy is directly aligned with evolving consumer behaviors — creating incredible growth opportunities for Kohl's. With the economy showing signs of improvement, we are seeing consumers spending more on themselves and their families. And as we emerge from the pandemic, our Consumer Insights team has been closely monitoring what and where customers are shopping. Our research, analytics and sales trends validate that three key consumer behaviors will only grow in importance.
Customers will continue to live more actively and casually
We expect that consumers will continue to embrace a more active and casual lifestyle as normalcy returns. As more people return to work, resume travel and attend events and gatherings, they are seeking out new and updated apparel, while maintaining the preference for casual comfort — which fits squarely into the product categories we are investing in.
We are committed to growing our active business to more than 30 percent of sales, by increasing dedicated space in-store, expanding our product assortment, and aggressively addressing white space opportunities in athleisure and in inclusive sizing. And, we are equally committed to becoming a destination for iconic casual brands like Levi’s, Tommy Hilfiger, Calvin Klein, and valued-oriented private brands like Sonoma Goods for Life and SO.
Customers want an even easier and more convenient shopping experience
We continue to provide an industry-leading omnichannel experience, tailored to deliver ease and convenience to our customers. Our off-mall store locations will be even more relevant in a post-COVID era as customers have appreciated the safety and convenience over the last year. In addition to the new Sephora at Kohl’s shop launching this fall, we are refreshing stores and reflowing categories to provide a more compelling and elevated shopping environment. And we continue to improve our overall digital experience, while embedding increased personalization.
Customers want clear and compelling value
Kohl’s is a leader in delivering compelling value, whether that’s through our iconic Kohl’s Cash, our Kohl’s Rewards loyalty program, or our Kohl’s Card credit program. Over the past year, we have taken big strides to improve our value communication and delivery to our customers. Last fall, we launched our Kohl’s Rewards loyalty program, simplifying and leveraging Kohl’s Cash as the rewards anchor and more fully integrating the program across our digital, omnichannel and store capabilities. And, we have improved and simplified our value equation by continuing to scale our pricing and promotional strategies, allowing customers to more quickly get to the end price and see the value.
“Last October, we debuted a new strategy with an even more significant pivot towards the active and casual lifestyle — and as we sit here today, that strategy has never been more relevant,” said Michelle Gass, Kohl’s chief executive officer. “The bets we've made as a company to chart our future course are exactly the right areas of focus consumers want. Much of our strategic work is still underway, which gives us great confidence that we are well-positioned for the future.”
For more information about Kohl’s strategic framework, visit Corporate.Kohls.com.
Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Measures
This article contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates,” “plans,” or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company's Annual Report on Form 10-K, which is expressly incorporated herein by reference, and other factors as may periodically be described in the Company's filings with the SEC. Forward-looking statements relate to the date initially made, and Kohl’s undertakes no obligation to update them.