Kohl’s Corporation is a company based in the United States. The company operates a chain of department stores where it sells clothes, personal care products, home goods, and other apparel. The company operates over 1100 stores in 49 states across the nation. The company was founded in 1962.
Why You Should?
- Kohl’s is a great reopening play in an investor’s portfolio. The company saw a drop in sales because people stayed indoors and some also experienced a drop in disposable incomes. The company also had to limit operations or close its stores as it was a non-essential business. However, once the pandemic is over, the company will grow.
- Kohl’s is the largest operator of department stores in the United States, someting that might help the company expand its e-commerce opportunities and development. The company has been developing its e-commerce software as well, something which has helped the company grow its quarterly e-commerce sales by double digit percentages.
- Kohl’s and other department stores have also been experiancing a spending boom due to stimulus payments as well as a higher demand for personal care, clothing, and other home good products as people go back outdors and return to normal. This spending boom will help the company recover from this pandemic. This will also benefit investors in the company.
Why You Should Not?
- The company faces tough competition in the retail business. Some companies include Walmart, Costco, Amazon, Home Depot, Target, and many others. This competition might hurt the company and its investors in the future.
- Kohl’s is a retailer that does not sell any non-essential that does not sell any essential products. This has hurt the company during the pandemic as they have had to shut down some stores. In addition to this, the company does not fare well during recessions as people stop purchasing non-essential goods. This will hurt investors in the company.
- Kohl’s, along with most other department stores, has been late to develop their e-commerce platforms and have been passed by competition like Walmart and Target. This caused the company to see slowing growth and lackluster sales as people shifted purchasing to e-commerce websites like Amazon and Walmart. This also hurt investors.
- In my opinion, there are better retailers to invest in. I would reccomend looking to purchase stocks in retailers like Walmart, Target, and Costco. These three retailers have excellent e-commerce platforms and also have a mix of essential goods (food, personal care products) and non-essential goods (electronic devices, furniture, etc.)
I think that Kohl’s might not be the best long-term investment option due to tough competition, slow e-commerce development, its position as a non-essential retailer, as well as better retail companies to invest in. However, the company is still a great reopening play (a spending boom will further speed up the recovery) and will also be able to develop its e-commerce platform for new opportunities.