Sioux Falls Aldi and Kohl’s Getting Together for Mega Store?
UPDATE: According to an email we received from Kohl's corporate offices, some information in the below-mentioned story from Better Homes & Gardens was incorrect.
According to Kohl's, the company "will pilot an initiative in which 5-10 Aldi stores will move adjacent to Kohl's store locations."
The Kohl's website goes on to say that "After rightsizing two stores in fall 2017, Kohl’s is accelerating this strategy in 2018. Kohl’s will rightsize approximately 12 additional stores, including a five to 10 store pilot effort with the fast-growing supermarket chain Aldi."
The "rightsizing" refers to Kohl's decision to shrinking "the footprint of select Kohl’s stores to be smaller. The remaining, underutilized square footage is then either leased or sold by Kohl’s to a different entity."
Based on this information, it seems highly unlikely that Sioux Falls will be a part of this program. The east side Kohl's is sided by a Dollar Tree store and the new Bath & Body Works. Neither location would seem to be a good fit size-wise for an Aldi store. And the fact that Aldi opened a standalone location just off 10th Street makes it highly unlikely to move.
The Louise Avenue Kohl's does have a building on one side that could fit an Aldi, but that is currently housing a Bed, Bath & Beyond. And again, Aldi just renovated a location further down Louise.
How would you like to have all of the things that Kohl's has to offer in its department stores available alongside all the groceries and stuff that Aldi has on the shelves in its discount grocery stores?
This concept is already being tested in some markets.
According to Better Homes & Gardens, the first Aldi/Kohl's hybrid store has already opened in Waukesha, Wisconsin. And there are plans to open more than 2,500 other such hybrid stores.
Sioux Falls has 3 Aldi locations and Kohl's has 2. There is no word at this time if they will in some way be merging together in this market in one or more combined locations.
There is speculation that this may be a marketing tactic to compete with what Target and Walmart are offering with everything they sell under one roof.
Kohl's is an American-based retail chain with over 1,150 locations nationwide. Aldi was founded by two German brothers and has over 10,000 stores in 20 countries.