Kohl's (KSS 0.07%) had a disappointing 2019. CEO Michelle Gass blamed that on three main factors: the home segment, the women's segment, and the company's gross margin. It has already addressed the home segment by adjusting pricing strategies and introducing new brands. It's handling the margin issue by planning for more sales to be digital, which comes with added shipping costs.
That leaves the women's apparel category as the biggest problem that needs to be fixed. Gass laid out a plan to do that during the chain's fourth-quarter earnings call.
Kohl's is dropping eight women's apparel brands. Image source: Kohl's.
How is Kohl's fixing women's apparel?
The chain has already put new leadership in charge of its women's apparel business. It also plans to make what Gass described as "bold moves" to address its product mix.
"After a critical assessment across our entire brand offering, we've made the decision to exit eight women's brands over the coming year," she said. "We believe this will provide greater clarity for our customers and a more compelling and current offering."
In addition to dropping brands, the company also plans to add some. It's going to introduce some of the new offerings at its March 16 investor day.
Kohl's is making money moves
Women's apparel has become increasingly competitive with rivals like Target aggressively adding new house brands and celebrity partnerships in the space. Gass deserves credit for identifying the problem and moving quickly to address it.
Getting apparel right isn't easy as fashion can be fickle and competition is fierce. Gass, however, seems to understand that this is an area of the business that needs near-constant attention and regular reinvention. If she keeps that attitude, she should be able to right the ship.
