Kohl's Teams With Weight Watchers to Boost Health Offerings
Kohl’s Corporation KSS revealed intentions to collaborate with the new Weight Watchers – WW, a renowned wellness company. Per the deal, the companies plan to come up with a range of offerings in 2019, with focus on health and wellbeing. Let’s take a closer look at this latest development and discuss its impact on Kohl’s performance.
Plans to Expand Wellness Offerings
With consumers becoming increasingly conscious regarding health, Kohl’s latest move to augment offerings in this space is prudent. Through the strategic partnership, Kohl’s will create a community space for Weight Watchers inside one of its stores in Chicago. This specially curated space will host workshops for customers and associates. Additionally, Kohl’s will be offering a range of Weight Watchers kitchenware and cookware across select stores. Moreover, Kohl’s will provide subsidized Weight Watchers membership for customers who have completed Healthy Rewards. The membership will enable access to WW Freestyle program as well as a three-month free WW Digital membership. The inclusion of such offerings is likely to aid Kohl’s customers meet their health goals effectively. Moreover, these efforts are in line with the company’s strategy to keep assortments aligned with consumers’ preferences.
Sales-Boosting Efforts Bode Well
We note that management’s constant efforts to boost sales have enabled the company to achieve positive comps for five straight quarters. In particular, strong brands have been boosting the company’s sales. Some of the well-performing brands adorning the company’s portfolio are Levi’s, Under Armour UAA, Nike NKE, KitchenAid and Champion among others. Moreover, the company is strengthening ties with retail giant Amazon AMZN to drive traffic. Kohl’s also regularly introduces brands to keep the collection fresh, evident from its latest collaboration with Weight.
Apart from these, Kohl’s is expanding e-commerce fulfillment centers to meet the requirements of rising digital traffic, especially from mobile sales. The company is also focusing on the strategic initiative, Greatness Agenda, which is designed to drive transactions per store and sales.
We expect that such well-chalked efforts will continue to propel this Zacks Rank #3 (Hold) company’s top line and help it meet targets effectively. In fact, such strategies to bolster business have aided this well-known retailer to gain nearly 11.2% in the past year compared with the industry’s rise of 2.6%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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