Kohl's confirms off-price store in New Jersey

Kohl’s is testing the off-price waters by opening a discount store in Cherry Hill, N.J., this summer called "Off Aisle by Kohl's," the company has confirmed.

As first reported by Retailing Today this week, Kohl'shas begun advertising and preliminary hiring procedures for associates for the store, located in the New Jersey section of the greater Philadelphia area.

"Off-Aisle by Kohl’s is a single store that will enable Kohl’s to test new ways to provide its customers with the opportunity to purchase merchandise at a highly discounted price," said Julia Fennelly, a spokesman for Kohl's. "Initially, this merchandise will consist of like-new items that have been returned to Kohl’s stores or Kohls.com. Eventually, other merchandise will be added to the assortment."

Off-Aisle by Kohl’s is located at 2005 Marlton Pike East, Cherry Hill, N.J., 08003, and will open to the public in early June.

Macy’s announced earlier this monththat its off-price business called Backstage will debut this fall. Off-price retailers provide a compelling value proposition to customers because they see major brands at discounted prices.The move by Macy's (and Kohl's?) comes as off-price chains, led by TJ Maxx and Ross Stores, have outperformed major retailers in the past few quarters.

Last week Kohl’s reported that sales at existing stores grew 1.4% in the three months ended May 2, slower than the 1.5%-2.5% growth the company forecast for the year. The retailer joined rivals Macy’s and JCPenney in reporting lackluster results.

Kohl's is headquartered in the Milwaukee suburb of Menomonee Falls, Wisc., and operates 1,164 stores in 49 states.