Two Major New Jersey Retailers Might Join Forces But With A Downside
The farther into the 2000's we get, the more powerful those monopolies have become.
It seems like becoming a company of a massive size is the only way to survive in this economy these days.
So businesses like Amazon, Google and Facebook are thriving because they control a majority of their own respective markets.
It is turning into a similar situation in retail.
I swear we hear about a new closing or hiatus every single day.
This piece of news isn't exactly a closing, but a possible change of ownership that will come with a downside....but more on this in a second....
Kohl's, best known as the humongous department store with men's & women's clothing, home goods & décor, toys and everything else in-between, has been offered a pretty big deal.
According to Patch.com, JCPenney has offered, "Kohls an acquisition deal for a whopping $8.6 billion."
If Kohl's accepts, would this mean the end of the Kohls brand as we know it?
According to Patch.com, "The JCPenney and Kohl's brands will remain separate with plans to streamline operations, merge IT systems and slash costs. All private apparel is set to be manufactured by the same label."
So in laments terms: one company will own and operate both brands.
It sounds like a lot of the changes with this merger would happen behind the scenes but both brands would remain as two separate entities on the front end. .
I do want to highlight one thing: both brands would get all their inventory from one manufacturer.
Do you know the good news that comes with this change? It could make things in both stores cheaper.
Whenever you buy anything in bulk, you save money. The more units you buy at once, the cheaper each individual unit costs for that order.
Imagine how low the prices could go if their orders are being doubled because leadership is now stocking the inventory in two stores!?
But just like with everything else, this business deal does come with a major downside.
Not along ago, Matt Ryan told you that Kohl's would be joining forces with Sephora by adding mini Sephora shopping sections inside select stores.
You know how there are mini Starbucks inside certain Targets? It is the same idea but Sephora inside certain Kohls stores.
FYI: The Sephora built inside the Middletown Kohl's opens TODAY, April 29th.
If the deal goes through, this partnership would basically be halted.
Mini Sephora stores would not be added to any additional Kohl's stores and we don't know what the fate would be of the already-existing Sephora stores inside other Kohl's locations.
I'm surprised at this part of the deal.
The business end of things between Sephora and Kohl's has already been worked out. This deal was put into play to bring younger shoppers into Kohl's stores.
Why would the new buyers want to put an ax in that plan?
I guess we will just have to wait and see if this offer is accepted.
There are positives and negatives to this business deal going through but either way, once a decision is made we will let you know.
Kohl's and JCPenney may be two brands that made it to 2022, but there is a large handful of businesses that didn't.
Do you remember any of these name brands?