Kohl’s said on Tuesday it would close all of its Off / Aisle discount stores four years after opening the first location.
The four stores, one in New Jersey and three in Wisconsin, which were opened as part of a test, will close on August 3, a Kohl spokesperson confirmed to FOX Business.
âWe appreciate everything we learned in the Off / Aisle test about inventory management, operational efficiency, in-store experience, and nimble and empowered store leadership. We have also learned that our strength and continuous improvements in inventory management across the company do not allow us to properly stock Off / Aisle stores on a large scale, âthe spokesperson told FOX Business in a press release Wednesday morning. “We thank all of the associates who have done a wonderful job with the Off / Aisle test. All associates at the Off / Aisle sites will have the opportunity to keep their jobs at nearby Kohl sites.”
Executive Vice President Jon Grosso echoed the same sentiment in a note sent to employees on Tuesday that said outlet stores were closing not because they were unpopular, but because there weren’t enough stocks to store shelves, the Milwaukee Journal Sentinel first reported.
“While we have learned a lot from testing, we have also learned that our strength and the continuous improvements in inventory management across the company do not allow us to properly stock Off / Aisle stores at large. scale, âGross wrote in the memo, according to the Milwaukee Journal Sentinel.
The retailer launched the discount stores in 2015 as an experiment to compete with other low-cost retail companies such as TJ Maxx and Marshalls. The aim was to sell items that customers had returned to regular Kohl’s stores at a reduced price.
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The announcement comes as more than 4,800 US stores – including icons such as JC Penney, Dressbarn, and others – are expected to close by the end of this year. Several retailers have admitted that they are having tough sales amid the rise of e-commerce.