There are certain shopping events consumers tend to look forward to -- Black Friday, Cyber Monday, and now, Amazon Prime Day. Amazon's (NASDAQ: AMZN) giant online sales event will run from Monday, June 21 through Tuesday, June 22. And the retail giant has already promised more deals than customers can track.
But Amazon may be facing some steep competition this year. Not only are Target and Walmart running their own major sales events concurrently with Prime Day, but now, Kohl's (NYSE: KSS) is entering the fold. The shopping center staple recently announced that it will have a WOW Deals shopping event during the same two-day period as Prime Day that will feature sales across its home, apparel, beauty, and toys categories.
Kohl's will offer those deals both in store and online. Furthermore, Kohl's will be giving customers the opportunity to earn $10 in-store cash for every $50 spent to use on future purchases.
Amazon can't get all the glory
For years, Amazon has been a huge threat to physical retailers, and that extends to department stores and big-box chains. Amazon's ability to undercut prices and ship goods out at lightning speed has given it a huge edge over its competition, and at a time when so many consumers are now shopping online, Amazon is poised to make out quite well when it runs events like Prime Day.
But the fact that other retailers are standing up to Amazon and aren't afraid to run sales at the same as Prime Day is encouraging. This especially holds true for Kohl's, which doesn't have the same expansive customer base that Target or Walmart might.
Although Kohl's faces some challenges in the year ahead, largely relating to supply chain issues and operating costs, it reported strong numbers for the fiscal quarter ended May 1. Revenue came in at $3.89 billion, which beat the $3.48 billion analysts were expecting. And store sales more than doubled during the quarter, while digital sales rose 14% year over year.
Encouraging news for real estate investors
The fact that Kohl's feels confident enough to compete with a retail giant like Amazon should give real estate investors peace of mind. In an age when so many stores have shuttered and more and more retailers are shifting their focus to online sales instead of investing in physical stores, there's fear among shopping center investors that a vacancy crisis could soon take hold, especially given the impact of the pandemic.
But this latest move from Kohl's sends a very clear message -- that it's not afraid to go up against players like Amazon and that if it plays its cards right, it might soon join the ranks of Target and Walmart with regard to physical footprint and customer loyalty.
Kohl's is already making strategic moves to draw in customers, like teaming up with makeup retailer Sephora and expanding its roster of brand partners to cater to the fashion-conscious. It's also introducing a new activewear line to capitalize on the fitness trend. And if Kohl's keeps moving in the right direction, it could, in time, grow to have the same staying power as some of the big-box giants we all know and love.