Kohl's to lease store space to ALDI

U.S. department store Kohl's, which is shrinking the size of roughly a dozen stores, will lease the newly opened space at several locations to Aldi, the German discount grocery chain that has been making an aggressive push into the U.S. The grocer will not set up shop inside the Kohl's stores but will be right next door, in a pilot that Kohl's says will include 5 to 10 locations. Aldi is planning to open 900 more stores in the U.S. in the next five years, the typically 12,000 square foot supermarkets take up less space than traditional groceries, with only enough room for about five aisles. Kohl's meanwhile gets to cut costs by shrinking its store footprint, and potentially gain new customers who may want to browse its aisles after they finish their grocery shopping. Kohl's says that it might seek out other supermarkets, or different types of retailers, to occupy the newly adjacent spaces.
