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Industry News

Kohl’s to sublet space in stores to Aldi

March 1, 2018

Department store operator Kohl's will sublet space to discount supermarket chain Aldi in as many as 10 of its 1,158 stores, reports the Associated Press.

Aldi operates some 1,700 U.S. stores across 35 states

Kohl's previously announced plans to seek partners to take on unwanted space inside some of its larger stores. Kohl's stores average 87,000 square feet each in size, and in some locations the company can operate more profitably in a smaller space, said CEO Kevin Mansell. The chain reported a 6 percent increase in same-store sales for the fourth quarter, its biggest gain since 2001.

Last year Kohl's began testing small-concept stores, and it also started accepting returns from Amazon.com at 82 of its stores. The company also has boutiques in 10 stores that sell Amazon products. During 2017, the retailer opened four new Kohl's stores and relocated one, and also opened one Off/Aisle outlet store.

By Brannon Boswell

Executive Editor, Commerce + Communities Today