Kohl’s Steps Ahead with Aldo – Analyst Blog

Kohl’s Corp. (KSS), an operator of departmental stores in the United States, announced that it will unveil its new collection of footwear in spring 2011. The new line is designed exclusively by the Canada-based Aldo Group International. Kohl’s pioneer deal with Aldo was announced on June 16, 2010.

 

Kohl’s has moved one step further in its strategy of diversifying its portfolio of private and exclusive brands by adding the Aldo brand. This portfolio of private and exclusive brands contributed 47.0% to total sales in the first quarter of fiscal 2010.

 

The footwear collection will showcase a wide variety of both men’s and women’s shoes − from dressy to casual − and will be made available at Kohl’s store and Kohls.com. The combination of Aldo’s fashion and Kohl’s pricing is expected to be a win-win for both the parties, as Aldo will get an opportunity to further strengthen its brand and Kohl’s will be able to offer a more varied range in its footwear category. Footwear delivered double-digit unit growth in the first quarter of fiscal 2010 and is one of the strongest performing categories of Kohl’s.

 

 

We believe the Kohl’s−Aldo partnership will boost both the companies. Also, the key behind the success in the footwear business is to follow the macroeconomic trends. The company should abide by the changing consumer needs and preferences and should be more innovative in order to compete.