Kohl’s (KSS) has its sights set on expansion as it looks to open 100 more stores and expand its partnership with beauty retailer Sephora, all while feeling the pressure of looming bidders that are looking to scoop up the home and apparel retailer.
Kohl’s announced on Wednesday that over the next four years, it will open about 100 new, smaller format stores in untapped markets as it looks to bring convenience to its customers.
Currently, about 80% of Americans live within 15 miles of a Kohl’s store, the company said.
The smaller format stores follow a pilot project of over 20 stores that averaged in size of about 35,000 square feet. A traditional Kohl’s store measures about 80,000 square feet, which is often too big for some markets, the company said.
The smaller stores allow Kohl’s to enter new neighborhoods with what it called a “hyper-localized experience” that would cater to the community’s needs.
A store will open in June in Bonney Lake, Washington. It will be followed in the fall by locations in San Angelo, Texas; Morgantown, West Virginia; Tacoma, Washington; and Lenox, Massachusetts. These stores will also have Sephora at Kohl’s shops.
Kohl’s said the new stores represent a “more than $500 million in sales opportunity as they ramp to full productivity.”
“Our strong and productive off-mall store base can continuously evolve with our customer’s expectations and demand, and we see substantial opportunities to leverage our real estate in producing long-term growth,” Mark Griepentrog, Kohl’s chief property officer, said in a statement.
In addition to the new store openings, Kohl’s said it will also introduce Sephora shops to 850 more locations by 2023.
The news of Kohl’s continued expansion comes as the retailer is being heavily courted by buyers despite a disappointing earnings report released earlier this week.
Shares of Kohl’s were up more than 15% on Wednesday upon a report from Reuters that said bidders were still competing to buy Kohl’s and were preparing to make binding offers, which may be lower than indicative bids.
According to Reuters, bidders lined up to make a deal for Kohl’s include private equity firm Sycamore Partners, brand holding firm Franchise Group, and mall owner partners and JC Penney parent companies Simon Property Group and Brookfield Asset Management.
Kohl’s said last week that all fully financed bids would be due in the coming weeks, CNBC reported.
CNBC noted that Kohl’s previously rejected an offer from Starboard Value-backed Acacia Research at $64 a share.
As of Wednesday at 1:33 p.m. ET, shares of Kohl’s were trading at $40.78, up $4.60, or 12.71%.
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