• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Current price of oil as of June 23, 2026

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Current price of oil as of June 23, 2026
RetailDepartment Stores

Why Kohl’s CEO believes stores will still matter post-COVID

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
May 20, 2020, 9:00 AM ET
Add Fortune on Google for similar content.

Subscribe to How to Reopen, our weekly newsletter on what it takes to reboot business in the midst of a pandemic.

The first-quarter bloodbath could have been much worse for Kohl’s.

The department-store chain on Tuesday reported comparable sales fell 43.5% in the three months ended May 2, largely because the pandemic idled all of its 1,100 stores for half the quarter. Picking up much of the slack was Kohl’s large e-commerce business and its ability to offer curbside pickup of online orders, something it had been testing at only a few stores pre-COVID-19.

“All this accelerated what would have taken years to happen,” Kohl’s chief executive Michelle Gass tells Fortune.

Last year, Kohl’s $4.5 billion e-commerce business represented 24% of sales. For the first quarter, digital sales were 45% of sales. That will normalize as more stores open, though Gass thinks they’ll settle at a higher percentage than last year and continue to rise. Kohl’s started to reopen stores in early May, and by Monday, half of them were open.

But as a greater percentage of sales comes online, it poses a question for Kohl’s: Does this change the role of its stores?

Kohl’s had already been in the process of shrinking hundreds of stores across the country—but not closing them—using stores as a distribution hub for e-commerce and a place to showcase products and stay top-of-mind for consumers.

“In places where we have a strong store base, digital sales are higher because the customer has that brand connection,” says Gass.

While the retailer has had a tough time of it in the past decade, with net annual sales stuck around the $19 billion mark and not budging much, Kohl’s has fared better than Macy’s or bankrupt Sears and J.C. Penney, thanks to being an off-mall retailer with tidier stores and a racetrack layout.

Kohl’s has helped itself by focusing on keeping stores clutter-free with tons of room for social distancing, something analysts say will be crucial for shoppers as stores reopen. The company has already removed racks holding small impulse items that clogged up aisles. Gass says even smaller stores, typically 35,000 square feet versus 80,000 square feet, are also spacious enough for social distancing.

Stores are still crucial to showcase new brands and initiatives, too. Kohl’s will host mini-shops for Lands’ End later this year, though it is dropping its Jennifer Lopez collection after 10 years.

Another way stores are critical: saving a retailer a ton on e-commerce sales. Kohl’s gross margin on merchandise fell a staggering 19.5 percentage points to 17.3% of sales, largely because of markdowns to clear inventory. But 2.5 points of that was from e-commerce. Using stores as pickup spots for orders is key to making the economics of digital sales work for brick-and-mortar stores.

Kohl’s quarter could have been much worse, given its emphasis on apparel. The Department of Commerce said last week apparel sales had fallen 89% in April compared with February. But Kohl’s has pushed hard into activewear in the past few years, offering its own yoga lines and bringing in Under Armour, blunting the blow.

Gass thinks Kohl’s will pick up market share from J.C. Penney, which told a federal bankruptcy court this week it planned to close 242 stores.

As for its own stores, Kohl’s has never closed many of them, and Gass believes physical retail will remain central to the chain’s business, even in the pandemic’s wake.

“As we sit here today, we are still really committed to our stores,” she says. “There is going to be a role for brick-and-mortar retail, but it’s going to look different.”

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

Institute's Global Conference at the Beverly Hilton Hotel,on May 6, 2024 in Beverly Hills, California.
RetailSpaceX
Elon Musk was the world’s first trillionaire for 12 days
By Eva RoytburgJune 24, 2026
2 hours ago
Mamdani’s picks sweep New York City’s congressional primaries, ousting two incumbents
PoliticsNew York
Mamdani’s picks sweep New York City’s congressional primaries, ousting two incumbents
By The Associated PressJune 24, 2026
5 hours ago
a
RetailAmazon
Amazon’s record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
7 hours ago
As marketers grapple with AI, business leaders at Cannes Lions say human creativity and authenticity matter more than ever 
Europecannes lions
As marketers grapple with AI, business leaders at Cannes Lions say human creativity and authenticity matter more than ever 
By Sam BirchallJune 24, 2026
10 hours ago
Amazon Prime Day isn’t a midsummer shopping event anymore. Here’s what changed in 2026
RetailAmazon
Amazon Prime Day isn’t a midsummer shopping event anymore. Here’s what changed in 2026
By Vidhi Choudhary and Retail BrewJune 23, 2026
1 day ago
Olympic rings at the Tesero Cross-Country Skiing Stadium ahead of the Milano Cortina 2026 Winter Olympics on February 03, 2026 in Tesero, Italy.
North AmericaSports
After the Knicks and World Cup, New York is ready for another challenge: the Olympics
By The Associated PressJune 23, 2026
1 day ago

Most Popular

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
1 day ago
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
15 hours ago
Current price of oil as of June 23, 2026
Personal Finance
Current price of oil as of June 23, 2026
By Joseph HostetlerJune 23, 2026
1 day ago
Current price of gold as of June 23, 2026
Personal Finance
Current price of gold as of June 23, 2026
By Danny BakstJune 23, 2026
1 day ago
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
Real Estate
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
By Sydney LakeJune 22, 2026
2 days ago
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Banking
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
By Jim EdwardsJune 23, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.