It's hard to think of a retailer that seemingly offers a different sale every hour as getting into the off-price game, but that's exactly what Kohl's plans to do with a test of a new concept that features returned clothing, accessories and home goods at deep discounts.
The first new store, Off-Aisle by Kohl's, will open next month in a New Jersey suburb of Philadelphia. The 30,000-square-foot store, according to the Milwaukee Journal-Sentinel, will initially sell "like new" merchandise and eventually add other goods.
Kohl's has not offered many details on the new concept, but the test comes at a time when sales from discount outlets are on the rise. Chains such as T.J. Maxx continue to post solid sales gains while Nordstrom Rack's contribution to its parent company's top and bottom lines has also grown. Macy's recently announced plans to test its own off-price format with four stores to open in New York State this fall.
Jen Johnson, vice president of corporate communications, told the Journal-Sentinel that discounts will be significant with some as much as 70 to 90 percent off. All sales will be final. The Off-Aisle store will not accept returns or grant exchanges.
Source: Kohl's