Kohl’s Partners with Planet Fitness: Flexing a New Co-location Strategy?
In March 2019, Kohl’s announced its partnership with Planet Fitness and plans to open up to ten gyms next to Kohl’s locations this year. The goal of this partnership is clear: attract more customers to visit their brick-and-mortar locations. Due to the “in-person” nature of a gym membership, these customers will be nearby, but will they be ready to shop? Equally intriguing, will Kohl’s shoppers be enticed into a workout?
Our primary objective was to identify similarities and differences between Kohl’s and Planet Fitness visitors. We analyzed visits to over 80 Kohl’s and Planet Fitness locations in Los Angeles over the last year. We found that both brands attract similar types of consumers and there is an opportunity for each brand to take potential customers from competitors.
An opportunity to out-seat the competition? Planet Fitness visitors tend to shop other department apparel more than they tend to visit Kohl’s
When comparing apparel retailers identified as Kohl’s competitors, Planet Fitness visitors are 47% more likely to visit Burlington Coat Factory than Kohl’s. A colocation strategy between Planet Fitness and Kohl’s may provide more availability/visibility for the department apparel retailer among gym-goers.
Additionally, Planet Fitness visitors are 43.40% more likely than the average Los Angeles consumer to also visit Marshalls, they are 36.48% more likely than the average american consumer to also visit T.J.Maxx. Planet Fitness visitors are 7% more likely to visit Marshalls than T.J.Maxx.
Kohl’s shoppers prefer wellness franchises like Curves and Weight Watchers
Kohl’s shoppers are more likely to visit fitness/wellness franchises like Curves and Weight Watchers than standard gyms like Planet Fitness and Gold’s Gym.
However, when Kohl’s shoppers do visit standard gyms, they are 29.87% more likely than the average american consumer to also visit Planet Fitness, they are 13.14% more likely than the average american consumer to also visit Golds Gym. Kohl’s shoppers are 17% more likely to visit Planet Fitness than Golds Gym.
Kohl’s and Planet Fitness visitors have similar demographic profiles
The distribution of average ages between both brands is very similar, with 35% of both Kohl’s and Planet Fitness fit in the 35-54 year old age range.
Planet Fitness visitors are only slightly more likely to make less than 75k a year than Kohl’s shoppers. The overall distribution of household income is similar between the two brands.
Kohl’s and Planet Fitness visitors align with similar consumer groups
Both Kohl’s and Planet Fitness visitors align with similar consumer groups, with slight differences in the ranking of categories like bargain hunter, fitness minded, and outdoors.
The consumer profiles between Kohl’s and Planet Fitness are strikingly similar. As it currently stands, both groups of consumers are less likely to visit the other brand when compared to its competitors (Kohl’s shoppers are less likely to visit Planet Fitness than its competitors and vice versa). This partnership looks like a strategic colocation aimed at expanding each brand’s market share into their competitive climates.
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Last year, we analyzed Kohl’s locations across the Chicago and Los Angeles areas that designated a portion of their stores as Amazon Return centers to allow Amazon customers a brick and mortar location to make returns free of shipping costs. When compared to the previous year, Kohl’s locations that became an Amazon Return Center saw a measurable increase in foot traffic (12%). Check out our research here: More people visit Kohl’s after opening Amazon Return Centers