Department Stores

There are those who continue to insist that the “Age of Department Stores” is nearing its end. In the past year, West Coast operators Mervyns and Gottschalks became extinct, and Boscov’s is in survival mode. Many chains are closing stores, laying off employees and cutting costs anywhere they can.

Revenues are in decline; segment-wide, year-over-year same-store sales declined by double digits. There are only 10 department store chains generating as much as $3 billion a year in annual sales, and as a group their revenues total about $136 billion — one-third of Wal-Mart’s worldwide sales.

Many of these chains will be around for a while, but one in particular is confident and aggressive in facing the future. Kohl’s opened 19 stores this spring and plans to open another 30 or so later this year. Last fall, the promotional department store opened 46 stores in one day as it passed the 1,000-unit level.

Kohl’s strength has been its assortment of private-label and exclusive brands, which account for about 42 percent of total sales. One of its most recent initiatives in this area was to sign a multi-year agreement with Lauren Conrad, star of the MTV reality series “The Hills.” The actress will introduce the LC Lauren Conrad line of “California casual” women’s wear in about 300 Kohl’s stores in October, with plans calling for an eventual chain-wide rollout.

Kohl’s exclusives include lines by Dana Buchman, Vera Wang and singer Avril Lavigne. Even in its housewares department, Kohl’s relies on exclusives that include Food Network cookware and designs by celebrity chefs Rachael Ray, Paula Deen and Bobby Flay.