We visited Kohl’s and saw why sales are dipping as the company looks like it might suffer the same fate as other department stores

• Kohl’s just reported third quarter earnings and sales that missed analysts’ estimates.
• The company said on Tuesday that sales at stores open at least a year grew 0.4% in the most recent quarter.
• We visited a Kohl’s in August and saw why the retailer poised to take on the retail apocalypse might not survive after all.
• Visit Business Insider’s homepage for more stories.

It looks like Kohl’s isn’t defying the retail apocalypse after all.

The company reported weak earnings for its third quarter and lowered it’s outlook for the remainder of 2019. Stocks dropped as much as 13% in early trading on Tuesday, following the announcement.

For a bit, it seemed as though Kohl’s was a bright spot in the department store sector. Kohl’s stores are not entirely mall-based, a factor which previously helped the company avoid the grim fate of stores like JCPenney and Sears. Kohl’s announced a partnership with Amazon in 2017 to accept returns for the e-commerce giant in its stores, a move which boosted traffic nearly 24% in the three weeks after the partnership began, data from inMarket revealed.

But now, the numbers – and stores – reveal that Kohl’s is only further proving that the death knell for the department store has long past rung.

We visited a Kohl's in August and were surprised to find it messily filled with out of style merchandise and clothes. After seeing the problems in person, we understood why the retailer might not be able to defy the retail apocalypse after all.

Here's what we saw:

We visited a Kohl's in a Jersey City, New Jersey mall.

A sign at the front of the store let us know about an option to buy items online and then pick them up in the store.

We also saw a sign that let us know about the Kohl's app, which gives customers the chance to save even more.

Kohl's stores are not entirely mall-based, a factor which had previously helped the company avoid the fate of stores like JCPenney and Sears.

Source: Business Insider

But walking through the store made it clear why Kohl's was likely slated for the same fate as its department store peers.

There were a lot of clothing options, but every item seemed completely out of touch with current fashion trends.

There were sales and deals posted on screens and placards throughout the store. The Vera Wang sleepwear section was having a buy one, get one 50% off sale.

But we found a lot of the options to be pretty unappealing. This two-piece Vera Wang pajama set cost $56.

The clearance section was somewhat of a wreck.

The kid's clothing racks were overflowing with clothes.

We also found a table with a pile of shoe boxes that looked ready to topple over.

We did find a cool little Fortnite sweatshirt for kids originally priced for $40 but on sale.

There were also a bunch of unattended carts that were located in the middle of the aisles.

In the sports-attire department, there was a large section for Under Armour, an athletic wear company that has had a bit of a hard time winning over the North American market.

Source: Business Insider

We also found some shoes and clothes from brands like Nike and Adidas later on.

Moving on, we made our way to a section full of kitchen appliances, which made up a large portion of the store.

The home-goods section was appealing overall — one of the strongest sections of the store so far. The shelves were orderly and well stocked with darling items meant to beautify a house.

Near the back of the store, we found some red lockers reserved for shoppers who had utilized the buy online, pick up in-store — or BOPIS — option.

Being in a mall makes declining foot traffic a difficult issue for stores like Kohl's to navigate. To combat this, Kohl's has a partnership with Amazon to let people drop off Amazon returns in the store.

The small stations increased store traffic by as much as 24%, according to data from InMarket.

Source: Business Insider

But even with the BOPIS lockers and Amazon kiosks, Kohl's has clearly not cracked the code for surviving the retail apocalypse.

The out-of-style offerings and slowing sales at Kohl's further prove that department stores as we know them are dying.

Source: Business Insider