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Aldi Mini-Stores Are Popping Up at Kohl’s

The concept will begin with a pilot test at 10 locations
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If you like to hit up the clothing department before grabbing groceries, you’re in for a pleasant surprise. Kohl’s has just announced a new partnership with Aldi that will allow the German grocer to sublet small spaces inside its department stores starting this year with 10 test locations.

On a call with investors, Kohl’s CEO Kevin Mansell said the move allows the company “to achieve further inventory reductions and margin acceleration as a result,” adding that smaller stores have a “phenomenal improvement in customer engagement, which is improved by ease of shopping” because the only available inventory is what people are most interested in.

But Aldi might not be the only market popping up at Kohl’s. In January, CNBC reported that the chain would partner with multiple grocers or convenience stores to fill vacant real estate. The outlet also says that Kohl’s is looking to strengthen its relationship with Amazon, which acquired Whole Foods Market last summer.

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"We've had initial discussions with Amazon about how and where we will expand the pilot, and we'll share the details on that when they're finalized," Mansell said on the call.

This could threaten superstores like Target, which has made a name selling groceries alongside home goods, electronics, beauty items, and clothes. Maybe people will start taking their wedding photos at Aldi, too.

For more on the discount chain that recently launched a vegan and vegetarian product line, here are 12 things you didn’t know about Aldi.