"Sales for the first half of 2009 exceeded our plans and indicated market share gains across most merchandise areas and regions," says Kevin Mansell, Kohl's president and CEO.
With a positive quarter, and half-year, Kohl's has plans to continue expanding and remodeling.
During the first half of 2009, the discount retailer opened 19 new stores across the country, with plans to open an additional 56 stores by year-end. The vast majority of the new assets will be located in California and the Southwest due to Kohl's purchase of Mervyn stores. Roughly 75% of new store openings this year are due to the Mervyn purchase.
Beyond new locations this year, Kohl's has also remodeled a number of assets. By the end of August, 51 stores will have been remodeled. Kohl's executives told investors this morning during a conference call that by the end of October one-third of its portfolio will have been built new or remodeled since 2003.
Kohl's isn't stopping with expansion and remodeling plans in 2009. Company executives plan to open between 20 and 25 new stores and remodel 65 locations. And should opportunities arise, like the previous Mervyn purchases, executives say they are poised to take advantage of further growth.
Whether the company will lease or buy properties is irrelevant. "Our cash position allows us to buy real estate but we are really indifferent to the type of deal. The number one priority is to get the best location," an executive said during the conference call.
Kohl's now operates 1,022 stores in 49 states.
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