Kohl’s to bolster omnichannel capabilities with new e-commerce fulfilment centre


US-based department store chain Kohl’s is planning to reduce the floor size of its outlets, in an attempt to shift its focus to e-commerce retail space.

Under the plan, the company intends to invest in its store base and improve the capabilities of its e-commerce fulfilment network.

The retailer is set to open four small-format stores and its fifth e-commerce fulfilment centre.

Kohl’s chairman, president and CEO Kevin Mansell said: “Our stores remain at the core of our omnichannel strategy, and we will continue to invest in them by opening smaller formats, rightsizing and optimising our selling space and working to ensure that shopping in our stores is an engaging and inspiring experience for our customers.

“We have set a goal to be the best-in-class omnichannel retailer and opening our fifth e-commerce distribution centre will support the delivery of online orders faster and more efficiently to customers nationwide.”

The company is looking to shrink its store base of more than 1,100 stores in 49 states and enhance its omnichannel capabilities.

"Opening our fifth e-commerce distribution centre will support the delivery of online orders faster and more efficiently to customers nationwide.”

The 937,000ft² new fulfilment centre to be located in Plainfield, Indiana, will cater to processing, filling and shipping Kohls.com orders and is expected to become operational later this month.

In October, the company is set to open four 35,000ft² small-format stores in North Smithfield, Rhode Island; Blue Ash, Ohio; East Windsor, New Jersey; and Montebello, California.

By the end of the year, it is expected that the company will reduce the size of around half of its stores.

Kohl’s plans to optimise its store in Warner Robbins store, Georgia, from 89,000ft² to 62,000ft² by the end of the year.

The physical space at the company’s Fort Smith store in Arkansas will also be reduced from 87,000ft² to 62,000ft².