Department store chain retailer Kohl’s is going to partner up with grocers or convenience stores to lease space in its stores.
With making about 300 of its stores smaller, there has been white space left over and the company plans to do something with it.
According to CEO Kevin Mansell who spoke to CNBC at ICR’s conference, Kohl’s will be teaming up with retailers to lease the white space and the footage would benefit from traffic-generating retailers like those that sell food.
He remarked, “If we had our preference, we are going first after well-capitalized companies, and preferably ones that have high traffic in grocery and convenience.”
“We are more apt to identify strong partners and then build a pathway with them through this pilot phase,” he also said.
Mansell did not comment on whether Whole Foods would be one of the retailers. He explained, “It’s not about Whole Foods, Aldi, or anybody else … we want a partner, ideally in food or convenience, to help drive traffic.”
Kohl’s will be elaborating on this news in its earnings called scheduled for March 1st. The company’s CEO is planning to retire in May.
Disclaimer: We have no position in Kohl’s Corporation (NYSE: KSS) and have not been compensated for this article.