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05/22/2015

Kohl’s Joins Off-Price Bandwagon

It will be a small test, with a single location in Cherry Hill, NJ, but department store Kohl’s will join the outlet store trend in early June.
 
The Off-Aisle by Kohl’s store will enable the retailer to test new ways to provide its customers with the opportunity to purchase merchandise at a highly discounted price. Discounts will be deep -- up to 70-90 percent off original prices, according to Julia Fennelly, Corporate Public Relations Manager for Kohl’s.
 
Initially, merchandise will consist of like-new items that have been returned to Kohl’s stores or Kohls.com. Eventually, other merchandise will be added to the assortment.

Off-Aisle by Kohl’s is approximately 30,000 square feet with 23,000 square feet of selling space. At this time, Kohl’s has no plans to expand this test to other locations, notes Fennelly.
 
The news comes on the heels of Macy’s announcement it will enter the off-price fray in fall 2015 with the opening of four Macy’s Backstage pilot stores in in the metro New York City area.
 
As consumers continue to delight in bargain hunting, retailers are exploring the outlet space, placing them in competition with companies, such as Nordstrom Rack and TJX Companies.