What: Kohl’s wants to pivot its business model from large department stores units to smaller and hyperlocal ones.

Why it is important: The strategy also aims taming down activist investors who are pushing hard to split online and offline, as already done by Saks and Hudson Bay.

Kohl’s is following suit with Bloomie’s and Nordstrom Local and plans to open 100 smaller and hyperlocal stores aiming at achieving USD $500 mn in sales, in addition to growing the Sephora business to USD $2bn with 650 new stores to be open by next year. The overall goal is to pivot from a department store model to a focused lifestyle concept.

Merchandising strategy is also revised and adapted to smaller locations, with active and athleisure assortments, especially on women’s.

Kohl’s is not a "department store” anymore