New York (CNNBusiness)Kohl's can't seem to take a break, which may itself be to blame.
On Thursday, his chain of department stores gave a bleak outlook for 2022, with full-year sales expected to fall 5% to 6% year-over-year, with high inflation pushing shoppers said to be a hindrance to Consumer income — from spending more at the store. The company also reported lower sales and profits for the quarter ended July 30.
Cole's stock fell more than 4% in morning trading.
"We have adjusted our plans and have taken steps to reduce inventory and reduce costs in light of the weaker demand outlook," said Kohl's CEO. Michelle Gass said in a statement.
Precarious course
to the United States With over 1,100 stores and annual sales of approximately $19 billion, Kohl's is the largest department store in the United States. It's a chain. But the company is struggling to find its way forward.
And last week, the retailer announced that it would be rolling out a self-order He pick-up option for online orders in all his stores within two hours.
But while these efforts are necessary for Coles, they cannot fully camouflage the chain's most fundamental problems, says Neil, retail analyst and managing director at GlobalData Retail. “In our view, Cole's predicament is largely internal. and a seemingly random purchasing approach, resulting in a jumbled mix of products in stores, exacerbated by very seriously deteriorating store management standards. ," Sanders said in a note on Thursday.
"Cole's was a little uninspiring, but his presentation was disciplined and neat. Everything went out the window over the past year," Sanders said. rice field. "In this kind of economic environment, consumers will quickly abandon purchases and stores that require too much effort for too little reward."