NEW YORK (TheStreet) -- Kohl's (KSS) announced on Monday that it will expand its same-day delivery services to Boston, Brooklyn and Queens, Los Angeles, Miami, Northern New Jersey and Philadelphia in the coming weeks.
Department stores such as Kohl's and Macy's (M) are hoping that investing in programs such as same-day delivery and in-store pickup will help e-commerce sales and improve competitiveness with online retailers such as Amazon.com (AMZN) ahead of the holiday season, Reuters reports.
Although e-commerce sales contribute to less than 15% of revenue for most department stores, online sales are expected to increase 13.9% in November and December as shoppers attempt to avoid holiday crowds at brick-and-mortar stores, according to Reuters.
"The consumer's expectation is clearly shifting increasingly to the 'I want it now' model, and department stores that are able to oblige will see significant increases in sales," Giulia Prati, senior research analyst at L2, told Reuters.
Kohl's is currently testing the service in Chicago, San Francisco and the Bay Area.
Shares of the company closed down 1.63% to $46.50 on Monday.
Separately, TheStreet Ratings team rates KOHL'S CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate KOHL'S CORP (KSS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.