Dive Brief:
- Kohl’s adjusted its planning and supply chain processes by protecting its replenishment receipts and increasing in-stock levels, CEO Michael Bender said in a Q4 earnings call.
- The strategy was in response to its fall business underperforming, which exposed operational opportunities to its inventory depth and allocation, Bender said during the call.
- “These adjustments are designed to ensure that the right product with sufficient depth is available at the optimal time across all our stores,” the CEO said.
Dive Insight:
After struggling to meet demand at its smaller format stores, Kohl’s inventory adjustments are already yielding positive results, including a smoother transition of its spring receipts heading into 2026, Bender said.
“Our spring seasonal categories have started strong,” Bender said. “To complement our investments in clarity and debt, we are focused on delivering a more consistent shopping experience through improved inventory allocation, which directly strengthens our omnichannel performance.”
These changes at Kohl's come after a challenging year for the retailer. Last year, the company closed a fulfillment center in Ohio to reduce its supply chain footprint. During that same time period, the company adjusted its orders in light of tariff pressures.
The retailer’s inventory changes are still a work in progress, and it expects inventory to be down to low to mid-single digits in 2026.
“As we anticipate the new initiatives to take time to have an impact, we expect sales to build throughout the year,” Bender said.
