MENOMONEE FALLS, Wis. -- Department-store chain Kohl’s plans to partner with retailers, including convenience stores, to lease store space to them in an effort to drive foot traffic, according to multiple reports.
About 300 Kohl’s locations are left with unused space after the chain downsized select units. This leaves room for stores-within-stores, such as the recent Amazon pop-ups in some locations.
"If we had our preference, we are going first after well-capitalized companies, and preferably ones that have high traffic in grocery and convenience," CEO Kevin Mansell told CNBC at the ICR investment conference in Orlando.
Mansell also said the retailer would consider partnerships with competitors, though not all of the roughly 300 downsized stores will necessarily lease space.
"It's not about Whole Foods, Aldi or anybody else. … We want a partner, ideally in food or convenience, to help drive traffic," said Mansell.
The company plans to announce news on this front during its next earnings call scheduled for March 1.
In addition to hosting partners in its own stores, Kohl’s is also exploring smaller-format locations. Many Kohl’s locations are about 87,000 square feet, but the retailer recently opened four 35,000-square-foot stores. Twelve such locations have been built to date.
This effort to downsize is also reflected by Target, which plans to open 130 of its small-format stores by 2019, according to CNBC.
Kohl’s posted strong holiday revenue due in part to its online sales, revamped beauty departments and partnerships with brands such as Under Armour and Nike, according to Business Insider.
Business Insider also reports that the company's shares were up 9% after the CNBC report and hit a more-than-one-year high of $59.25 on Wednesday.