Retail chain Kohl’s is looking to partner with convenience stores or grocery to chains to lease space within certain stores. The stores in question are the roughly 300 locations that have been ‘right-sized” over the past several years, said CEO Kevin Mansell at ICR’s conference last week.
The right-sized locations are operationally smaller and more profitable stores located within the approximately 87,000 sq foot boxes. The downsizing of the stores leaves additional empty square footage. A prime candidate for the extra space would be a grocer or other foot traffic generating retailer.
“If we had our preference, we are going first after well-capitalized companies, and preferably ones that have high traffic in grocery and convenience,” Mansell said.
Kohls has already created a list of preferred vendors, but won’t say if Whole Foods is on the list. Kohl’s already partners with Amazon, selling Amazon products and accepting its returns.
The appeal for potential partners is big parking lots and their own foot traffic. The combo would also be able to compete with Walmart and Target, who have already employed similar strategies.