Kohl's to add Aldi to stores in pilot program

Kohl's announced last week that it will bring Aldi into as many as 10 stores later this year in an attempt to increase customer traffic and store productivity. The specific stores were not released.

Earlier this year Kohl's CEO Kevin Mansell said the company had "a whole list of partners" ready to fill the space leftover from Kohl's recent efforts to rightsize its footprint. In addition to grocery stores, Mansell mentioned convenience stores and fitness centers as candidates.

Aldi, which continues to expand at a rapid pace, currently has 1,600 stores across 35 states. It plans to expand to 2,500 stores by 2022, which would make it the third largest grocer in the U.S. behind Walmart and Kroger.

Kohl's plans to add groceries to select stores

According to reports, Kohl's is looking for "well capitalized companies" that it can partner with to offer groceries and drive traffic to its stores.

Kohl's has streamlined their offerings in hundreds of stores in recent years, and several of those locations have excess space that can be used to showcase grocery items that draw customers in more frequently. For stores that are part of a larger shopping center, selling groceries may be restricted by other tenants, or waivers may be needed by certain co-tenants.

The company currently operates about 1,100 stores, most of which are in the 80,000 - 90,000 square foot range.

According to the Milwaukee Journal Sentinel, the grocers that partner with Kohl's would have their own entrances and would be separated by an internal wall. It is expected that Kohl's will provide more information during its March 1 quarterly earnings call.

Whole Foods annouces plan to regain sales and reverse stock plunge

Earlier this week Whole Foods announced several major changes in an effort to reverse poor results and a sagging stock price. The changes include new board appointments as well as a plan to slash costs and regain sales and earnings momentum.

Initiatives include the following:

• Accelerating an affinity loyalty rollout to all U.S. stores
• Completion of an effort to restructure its purchasing program by the end of 2017
• Implementation of chain-wide category management by the end of the 2018 fiscal year
• Cost savings of $300 million by the end of the 2020 fiscal year by standardizing in-store processes and better allocation of labor, support function efficiencies, and supply chain optimization

In addition, the company announced the appointment of five new independent directors to its board, and named former Kohl's executive Keith Manbeck as CFO.