Kohl’s Corp. has confirmed that it is entering the off-price arena with a pilot “Off Aisle by Kohl’s” store that will open in Cherry Hill, NJ.
The store is just a test and at first will feature returns from Kohl’s stores or its website at highly discounted prices, while “other merchandise” will be added eventually, according to Kohl’s spokesperson Julia Fennelly.
The news comes on the heels of Macy’s recent announcement that it will pilot four off-price stores in New York City dubbed “Backstage.”
You know the off-price space is getting crowded when the downscale department stores get in the game. It’s understandable that Kohl’s would test a store like this, if only to get in on the action.
But the gold standard that everyone compares themselves to — TJX Companies — has a different customer and a different approach than most of these other retailers, which is not entirely replicable. It’s hard to know where this is all going or whether the upsides of the off-price boom will disappear as things get saturated.