Kohl's Receiving Takeover Bids: The Path Forward Could Get Ugly

Retail
Written By Rick Watson

Kohl's Receiving Takeover Bids: The Path Forward Could Get Ugly

While the CEO of Kohl's recently released a makeover plan, that hasn't stopped the investors from circling. Here's what's happening now:

- It seems like there are at least two parties in play -- Hudson's Bay and Private Equity firm Sycamore Partners.

- Stock jumped on the news, indicating the market is encouraged by the fact that Kohl's may need a new concept and leadership, and not just another rebrand or transformation.

- Another player Engine Capital released a report saying they expect the Board to reject any bids due to a misguided / overinflated sense of the value of the company today.

The private equity approach would likely be a ruthless gutting is my feeling, tied to a kind of complete reimagination of what Kohl's could be.

Hudson Bay I hadn't considered before, but if you consider Saks stores as the premium brand and Kohl's as the mid-market brand there could be some options here.

I expect this path would split out online and stores similar to Saks? It's possible.

I don't always say this, but private equity may be the right play here, backed by the right kind of reimagination/streamlining.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
Previous

FedEx Management Needs to Go, Continues to Stumble
Next

Shopify Still Wins Because It Works Better