Kohl’s expects to exceed $1 billion in web sales this year
March 4, 2011 04:06 PM
Kohl’s Corp. is on an e-commerce hot streak and web sales this year will likely surpass $1 billion for the first time, CEO Kevin Mansell recently told Wall Street analysts on the company’s year-end earnings call.
“I would expect us to achieve $1 billion in e-commerce sales in 2011,” Mansell told analysts. “In order to achieve that goal, we will continue to invest in the business.”
For 2010, Kohl’s, No. 43 in the Internet Retailer Top 500 Guide reported:
- Growth in web sales of 49.2% to $733.4 million from $491.5 million in 2009.
- Total sales increased 7% to $18.4 billion from $17.2 billion in 2009.
- Comparable-store sales increased 4.4%.
To keep pace with its burgeoning e-commerce sales, Kohl’s in 2011 will increase its investment in its web and fulfillment infrastructure, Mansell said. Kohl’s will open a third e-commerce distribution center this year, but did provide immediate details on location and an opening date.
The new distribution center is part of $1 billion Kohl’s will spend on infrastructure improvements this year, Mansell told analysts. “Our expectations are to spend $1 billion for capital spending in 2011 as we opened 10 additional new stores over 2009, add 15 incremental remodels for a total of 100, open a third e-commerce fulfillment center and roll out electronic signs to approximately half the chain,” he said.
Kohl’s already has e-commerce distribution centers near San Bernardino, CA, and Monroe, OH.