Kohl's CEO Michelle Gass on Holiday Sales, Trade Tensions and Wages

The transcript discusses Kohl's strategies for the holiday season, including product lineups, toy category expansion, and partnerships with brands like Lego and FAO Schwarz. It addresses operational challenges such as margin pressures and labor market issues, and highlights the Amazon returns partnership. Kohl's aims to attract millennials and expand its customer base through digital marketing and subleasing strategies. The company is also preparing for potential tariff impacts by diversifying its supply chain.

What has contributed to Kohl's positive momentum entering the holiday season?

• Four consecutive quarters of sales growth

• A new CEO

• A partnership with Amazon

• Expansion into international markets

How is Kohl's planning to capitalize on the absence of Toys R Us?

• By reducing toy inventory

• By opening new toy stores

• By curating relevant toy brands like Lego and FAO Schwarz

• By becoming a big box toy seller

What approach is Kohl's taking to manage increased wage costs?

• Cutting employee benefits

• Implementing a selective wage increase strategy

• Raising wages across all stores

• Hiring fewer seasonal workers

What is Kohl's strategy for handling Amazon returns?

• Limiting returns to specific products

• Offering free and seamless return processes

• Only accepting returns during the holiday season

• Charging a fee for returns

What is one of Kohl's strategies to attract younger consumers?

• Offering free shipping on all orders

• Launching a new line of children's clothing

• Collaborating with brands like Pop Sugar

• Opening stores in college towns

What is the focus of Kohl's digital strategy during the holiday season?

• Closing online stores

• Increasing digital marketing spend

• Offering discounts only in physical stores

• Reducing online inventory

What is Kohl's doing to enhance the in-store experience?

• Increasing product prices

• Eliminating customer service desks

• Reducing store hours

• Introducing self-checkout options

What percentage of Kohl's sales is attributed to women's apparel?

• 50%

• 70%

• 30%

• 10%

How is Kohl's preparing for potential tariff impacts?

• By diversifying their supply chain

• By sourcing exclusively from China

• By reducing product quality

• By increasing prices immediately

What is a key component of Kohl's apparel strategy?

• Reducing the number of private brands

• Eliminating women's apparel

• Balancing national and proprietary brands

• Focusing solely on national brands