Department stores are among the hardest hit retailers from COVID-19 disruption. Moody’s analysts have estimated operating profit for the sector could fall by some 200% this year as the spring’s store closures, continued sales declines and discounting take their toll.
Despite several advantages, Kohl’s has suffered along with its sector. A RapidRatings “stress test” from the summer found that the retailer’s financial health could be among the hardest hit in the industry if Kohl’s faces prolonged sales declines.
Not that long ago, Kohl’s served as a modest success story in the troubled department store space after engineering a turnaround that appeared, for a time, stable and lasting. But in recent years the retailer has struggled to maintain growth. Kohl’s kicked off the year on a lackluster note, reporting a slight decrease in sales for the holiday period, which followed a disappointing performance in the third quarter of last year. In February, the retailer announced it would slash 250 jobs to cut costs and boost profits amid tepid sales.Retail Dive