Kohlís teaming up with Aldi

Associated Press

March 2, 2018

NEW YORK ó Kohlís shoppers will be able to pick up some groceries while shopping for clothing at select stores.

The department store chain said Thursday it is teaming up with German no-frills grocery chain Aldi to lease space in five to 10 of its stores. The move comes as Kohlís looks to scale back its footprint while making its stores more productive.

Kohlís also reported a 6 percent increase in sales at established stores for the critical fourth quarter, the largest gain since 2001. Business was helped by more customers coming into the stores as well as shopping online, where sales were up 26 percent. Kohlís also reported better-than-expected profits as it offered fewer discounts.

The report followed good results at Macyís Inc., which broke out of its three-year sales funk, as department stores try to regroup as shoppers spend more online and on items other than the clothing on which the chains are very dependent. Retailers have revamped their businesses, from closing poorly performing stores to changing their product lineups to expanding their online services.

Kohlís has been testing small-concept stores and last year started accepting returns from Amazon.com in 82 of its stores. It also has dedicated areas in 10 stores that sell Amazon Echos, Fire tablets and other gadgets.