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18November 2018

Kohl’s now has LEGOs*

(*Please note, we are well aware it is sacrilege to add an “S” to the end of LEGO and the plural of LEGO is LEGO).

Probably not the rollout LEGO was hoping for when the Kohl’s commercial proudly and loudly announced they now carry LEGOs. I imagine there was an account rep for LEGO somewhere in Enfield, CT whose head exploded when they saw that first commercial. Apparently Kohl’s didn’t get the memo.

Even my beautiful and talented wife noticed the gaffe.

Let me start off by stating that I like Kohl’s and shop there as often as I shop at any brick and mortar retailer. I also understand LEGO’s need to replace the retail footprint it lost with the closing of Toys ‘R Us. I’m just not sure how this is going to work.

First off, no one has ever paid suggested retail price at Kohl’s. Ever. For anything. It’s a major part of their strategy, part of their appeal. Every time you check out, the cashier cheerfully tells you how much you saved – from suggested retail price (which no one at Kohl’s ever pays). It makes you feel good – you got a deal.

Until now.

As lovers of the inter-locking plastic brick, we realize sales on LEGO are not common and often meager (except here). That’s not how Kohl’s works. Can you imagine the shocked look on the cashier’s face when they proudly announce your purchase of LEGO at Kohl’s and you didn’t save anything. Not a penny. You paid full retail price.

Regular price? But, but, but this is Kohl’s.

On my fact-finding visit in preparation for this blog post, I found the LEGO area in a far back corner, behind the Kids section. OK, maybe it makes sense to put near the Kids department, but I was dismayed by the small number of sets and selection. Just a couple of shelves worth and nothing to get excited about. While wandering through the entire store and seeing all the amazing deals and discounts on retail prices I was eager to see what kind of deal Kohl’s had in store for me with Lego. Nothing. Not a penny off.

I’m not sure the business models mesh. LEGO didn’t become LEGO by offering deep discounts on its sets. Kohl’s doesn’t attract hoards of shoppers by charging Suggested Retail Price. Brings to mind a quote about a failure to communicate.

So I’m curious to see how this relationship matures. Kohl’s is obviously a big fish with almost 1,200 locations and a listing as the second largest department-type store in the country. I wish them the best. At the end of the day, I think this only amplifies the huge gap the loss of Toys ‘R Us left LEGO’s retail footprint in the United State and what a challenge it will be to fill.

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