Dive Brief:
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Mid-tier department store Kohl’s Corp. has eliminated three senior executive positions, including chief digital officer, senior vice president of store environment and development, and senior vice president of communications and public relations. The three positions will not be filled, a Kohl's spokeswoman told the Milwaukee Journal Sentinel.
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A Kohl’s spokesperson has told news outlets that the move is part of a restructuring that will make the company a "faster, more agile organization," according to the Milwaukee Journal Sentinel.
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That effort comes as Kohl’s continues to struggle with its turnaround, dubbed its "Greatness Agenda," and shortly after the retailer reported weak sales growth during the holiday quarter. In an internal e-mail obtained by Milwaukee Journal Sentinel, Kohl's CEO Kevin Mansell said that the retailer is "not getting to the results we want as fast as we should."
Dive Insight:
Kohl’s is making many of the right moves—the company has a strong loyalty program called that it has successfully moved onto mobile, and it has benefited from being built in retail areas not linked to malls.
But in an internal e-mail obtained by Milwaukee Journal Sentinel, Kohl's CEO Kevin Mansell admitted that the retailer is "not getting to the results we want as fast as we should."
Shopping at Kohl’s still has too many “pain points” in store, according to Shelley E. Kohan, VP of retail consulting at store analytics firm RetailNext.
“I almost think that they’re focused on so many strategies that maybe they’re walking away from some important areas,” she told Retail Dive.
Kohl’s has many advantages over other department stores, like being away from the mall, says Howard Davidowitz, chairman of New York City-based retail consulting and investment banking firm Davidowitz & Associates Inc., who told Retail Dive that Kohl’s has “the best metrics in the department store business,”
But, as J.C. Penney, perhaps their major rival, has risen as its turnaround gains traction, Kohl’s has faced more competition, say both Kohan and Davidowitz. And, Davidowitz says, their customers continue to struggle even in an improved economy.
"Kohl’s is slowing down because the middle class is getting killed,” he said.
Still, taking the company private, a possibility reported by the Wall Street Journal last month, could help Kohl's make some changes without the pressures and expectations of a publicly traded company.