What: The Robin Report reviews where Kohl’s stands and the perspectives for the company.

Why it is important: Is Kohl’s too big to fail?

Kohl's, once a retail powerhouse, is now grappling with significant challenges. The company, which disrupted the market and outpaced competitors like Mervyns, is stuck in a difficult position in the retail landscape. It faces internal issues like management turnover and external pressures such as investor scrutiny. CEO Tom Kingsbury, a respected retail veteran, is attempting to steer the company back to profitability and growth.

Positives for Kohl's include profitability despite a drop in earnings, improved gross margins, and reduced inventory levels. The retailer's physical stores have seen a slight uptick, and its partnership with Sephora has proven to be highly successful. Additionally, Kohl's real estate strategy, focusing on strip mall locations and testing smaller stores, appears advantageous in the current shopping environment.

Challenges for Kohl's are substantial. The retailer is struggling to find its place in the market, squeezed between discounters like Walmart and higher-end stores like Macy's. Its online business strategy is currently de-emphasized, a risky move in a digital-centric retail world. The company is also dealing with a complicated promotional strategy and aging store locations.

Kingsbury's age and previous semi-retirement raise questions about his long-term commitment to overseeing the company's turnaround. Moreover, Kohl's merchandising strategy, fluctuating between national labels and house brands, needs a clear direction. As the company navigates these challenges, it faces the threat of investor action and the need for a coherent, effective strategy to adapt to the evolving retail environment.

Can Tom Kingsbury Fix Kohl’s?