Many market analysts have speculated that Kohl’s, the controversial large-scale U.S retailer, now has a chance to once again make profits following the struggles her business rivals have been facing.
The storm has hit the retail industry so hard that Bon-Ton Stores, the chain store with over 260 stores has filed for bankruptcy. Sunday marked the fall of the retailer that has been serving the Midwest and Northeast parts of America for 100 years. This announcement followed last week’s surprising closure of several of Bon-Ton Stores.
These unfortunate store closures have given experts reason to believe that Kohl’s now has the perfect opportunity to grow. Plus, all Khol’s Shops are strategically located, a factor that will provide them with an upper hand over competitors. Unbelievably, 33 of all 47 Bon-Ton shops listed to shut down by end April are situated within 5 miles of a Kohl’s shop location as revealed by Randal Konik, a market expert. And this may even push investors to go for Kohl’s stock.
Will Bon-Tons sudden fall mean a break for Khol’s on this year’s retail market?
Well, Khol’s has stood her grounds in the industry, even as more and more chain stores across the United States announce closures and record low sales. Last year, in the November-December festive period alone, Khol’s reported a remarkable 6.9% increase in chain store sales beating market bigwigs like Macy’s and J.C. Penney which only recorded 1% and 3.4% growth respectively during the same season.
Industry analysts attribute this merit partly to Kohl’s ability to make the most of her competitors’ disasters. According to Randal Konik, Khol’s takes over 40% sales volume every time a Macy’s store is closed. And this transfer level may also apply for Bon-Ton Shops mainly because they deal with almost similar products and have the location advantage.
Kohl’s has stayed safe by learning from her counterpart’s mistakes. First, they have avoided the locating their shops in hidden shopping malls where only one of her ten stores is located.
Specialists believe that off-mall store sites offer more convenience for buyers. What’s more, Khol’s has also worked her store designs to meet shopper needs.
A noteworthy example is its “smart basket” promotion that offers their shoppers discounts for collecting items from the store rather than letting the company do the shipping. Lastly, Kohl’s has reduced the store sizes to improve their efficiency.
Now, all retailers (whether you run a low or high risk merchant account) should learn to change with the market conditions like Khol’s.
Author Bio: Electronic payments expert, Blair Thomas, co-founded eMerchantBroker. His passions include producing music, and traveling to far off exotic places. eMerchantBroker is America’s No. 1 high risk merchant account company, serving both traditional and high-risk merchants.