Aldi and Kohl's Partner for Brick and Mortar
MENOMONEE FALLS, WI - A new partnership between department store retail chain Kohl’s and Aldi is in its early stages—the former, which has been looking to consolidate its department stores’ size and overtures to grocers with which it sought partnership so as to sublet space within the locations that recently have been right-sized, is looking to the international grocery chain to supplement the reduced sizing of the stores with grocery offerings.
“We will right-size approximately 12 additional stores, including a 5 to 10-store pilot effort with fast-growing supermarket chain, Aldi,” revealed Kohl’s CEO Kevin Mansell in a conference call this week. “We believe the opportunity to leverage our real estate through this effort has benefits on both the top line with increased traffic and the bottom line through expense offsets, both fixed and variable.”
If this piloting program succeeds, Business Insider speculated the department stores’ burgeoning partnership could reach 300 recently right-sized locations for Kohl’s.
In addition to these plans with Kohl’s, the news source noted that Aldi has its heart set on expanding to 2,500 locations throughout the U.S. by 2022; this new partnership with established Kohl’s could expedite Aldi’s ambitious plans.
How will the pairing of fresh produce with fashion perusing boost both retailers’ sales, and will it offer the ticket to rival other multi-industry spanning companies like Walmart and Target? AndNowUKnow will keep you updated with the latest developments!