Dive Brief:

• Kohl’s Corp. has confirmed that it is entering the off-price arena with a pilot “Off Aisle by Kohl’s” store that will open in Cherry Hill, NJ.

• The store is just a test and at first will feature returns from Kohl’s stores or its website at highly discounted prices, while “other merchandise” will be added eventually, according to Kohl’s spokesperson Julia Fennelly.

• The news comes on the heels of Macy’s recent announcement that it will pilot four off-price stores in New York City dubbed “Backstage.” 

Dive Insight:

You know the off-price space is getting crowded when the downscale department stores get in the game. It’s understandable that Kohl’s would test a store like this, if only to get in on the action. 

But the gold standard that everyone compares themselves to — TJX Companies — has a different customer and a different approach than most of these other retailers, which is not entirely replicable. It’s hard to know where this is all going or whether the upsides of the off-price boom will disappear as things get saturated.