August 29, 2007, 12:00 AM

Thanks to streaking sales, the web takes on greater importance at Kohl’s

Q1 web sales at Kohls.com grew by 66% to $52.5 million. At the same time, comparable store sales in the first quarter increased by just 3.9% and only 1.3% in Q2.

Mark Brohan

Research Director

E-commerce is growing in importance as a sales channel for Kohl’s Corp.

In the first quarter, Kohl’s reported that web sales grew by 66% to $52.5 million from $31.6 million in Q1 2006. At the same time, same store sales in the first quarter increased by just 3.9%. Total revenue grew by 11.8% to $3.6 billion. The company has yet to break out e-commerce sales for the second quarter, but comparable store sales rose by only 1.3% as total sales grew by 8.7% to $3.6 billion.

Kohl’s, No. 219 in the Internet Retailer Top 500 Guide, also took down its e-commerce site this week for a series of upgrades and was scheduled to relaunch Kohls.com on Aug. 29 or slightly later. The upgrades will make it easier for shoppers to navigate the site and locate merchandise, the retailer says.

Kohl’s is making e-commerce a priority. In March the company chose Allurent Inc.’s Rich Commerce Suite to improve conversion rates and reduce checkout abandonment on Kohls.com. Kohl’s is also doubling the size of its e-commerce fulfillment center in Monroe, Ohio. The expanded facility will occupy 900,000 square feet.

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