Brick-and-Mortar Retail in the Age of Covid [comma] and Amazon

Here is another superb article from for The New York Times in which he shares his conversation with Michelle Glass. To read the complete article, check out others, and obtain information about deep-discount subscriptions, please click here.

Credit: Maggie Shannon for The New York Times

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Michelle Gass, the chief executive of Kohl’s, is striking deals with Amazon and Sephora in a bid to stay relevant.

Yet even as giant shopping malls are dying and many storefronts are shuttered, the big box stores that anchor strip malls throughout the exurbs are enjoying something of a renaissance. Companies like Best Buy, Dick’s Sporting Goods and Home Depot have managed to hang on, and even thrive. Add to that list another, somewhat unlikely, entrant: Kohl’s.

The retailer, which sells clothes, home wares, sporting goods and more, is hanging on against the odds. Just where Kohl’s fits in isn’t always clear. It’s smaller than a department store, but has many of the same offerings. Its stores are often near Walmarts, but feature more mainstream brands.

Since taking over as Kohl’s chief executive in 2018, Michelle Gass has been working to carve out a distinct identity for the company. She joined the company eight years ago after more than a decade working at Starbucks.

Among her moves — besides keeping the stores open during the pandemic — has been striking a series of partnerships with other companies.

The most unconventional was a deal with Amazon in 2019 that allows customers to return Amazon products to Kohl’s stores. While there, Ms. Gass hopes, they might do some shopping.

Another new partner is Sephora, the beauty retailer, which is setting up mini-stores inside Kohl’s locations. It’s a bit like, well, a department store.

This interview was condensed and edited for clarity.

What about your childhood informs your work as a C.E.O. today?

I was born and raised in a small town in Maine, and grew up in a very working-class family and community. I was among the first in my family to get a four-year college degree. That fostered a drive to do more, achieve more, from a really young age. I worked all the way through high school and college. My first job was bagging groceries. I waitressed and even did factory work. I like to work hard, and I really put a high value on people who also work hard.

I got my degree in chemical engineering. Sometimes people ask me, “How did you learn engineering, especially as a woman?” And candidly, I was quite pragmatic, and I knew I could get a great job with it. I didn’t grow up with any engineers around me, but I did my homework and I had a sense that this was going to open up doors. And it really did.

What did you learn from working with Howard Schultz at Starbucks?

Three things. One is the importance of culture; such a strong culture was built over time. Secondly, it’s not just what you sell, but it’s the importance of that human connection, the emotional connection around the life or consumer, the affinity for the brand. And then the third, and a big passion of mine, is the power of innovation.

Starbucks has a very clear brand proposition. How do you define where Kohl’s sits in the consumer ecosystem?

Kohl’s had a successful model for a long time, sort of this hybrid department store brand, but with mass mall convenience. But over time that got blurred. So the challenge and opportunity is, “OK, what is the space we can occupy that will be differentiated?” Part of it was becoming a relevant omni-channel retailer. And I really feel like we’ve checked that box. But from a product and brand standpoint, how are we going to be more relevant? How are we going to have a brand stand for something?

Department stores have struggled over the last several years. So how do you make it work when the J.C. Penney’s and the Macy’s have had such a hard go of it?

We are very far apart from what a traditional department store is. We are small, we’re super convenient and that allows us to do things like buy online, pick up in store and curbside. But more importantly, we see ourselves as a specialty concept, that Kohl’s is the curator and the editor to bring you all the products and brands you need to lead a more active and casual lifestyle.

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Here is a direct link to the complete interview.

David Gelles writes the Corner Office column and other features for The New York Times’s Sunday Business section, To learn more about him and his work, please click here.

 

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