Kohl's is embracing the digital revolution as best it can. From e-commerce sales to CapEx IT spending, the retailer is increasing its numbers. For the quarter ended June 30, 2012 e-commerce sales increased 39% over the second quarter of 2011 to $237 million.
Year-to-date, e-commerce sales have increased 41% to $488 million, in line with the 40% goal that was laid out at the beginning of the year. "We have doubled the size of our e-commerce business in two years, literally doubled that," said Kevin Mansell, Kohl's president and CEO on a recent call with investors.
The retailer has a lot of e-commerce investments planned for the next three years, beginning with re-platforming in the spring of next year. From a return on investment perspective, although e-commerce has been performing well, the company expects it to be a couple of years before it's performing significantly better than brick-and-mortar stores.
Kohl's has also made it a priority to reallocate CapEx spending increasing its technology investments and decreasing its new store openings and remodels. These technology investments include all aspects of this business from technology improvements to more efficient fulfillment capabilities and a larger, more experienced organization. Investments support not only the online business, but also provide ongoing operational efficiencies in stores and the corporate location.
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