Kohls & National Credit Tenant

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I was reading about kohls today and learned about kohls working with right-sizing their 1100 stores and working with a national credit tenant (NCT).
Being a new word, it peaked my interest. NCT, stands for national credit tenant.


Who is a NCT- National Credit Tenant?

A company which is awarded an investment grade rating based on financial strength & its size by the 3 major credit rating agencies- Moodys, fitch & Standard & poor.

How does this help to work with a National credit tenant?


  • financial stability. not losing the rent.
  • being able to sign long-term contracts.
  • Driving much more foot traffic in.

What are the benefits to a company which gets high 'NCT' rating?

  • Better leverage in lease deals.concessions.
  • Better leverage in asking for customization (parking spaces, location customizations etc), marketing, advertising space etc.
  • May be able to work closely & get into a strategic partnership on geography, state level.

Who can be NCTs?

Companies like Starbucks, Walgreens, Krogers, seven eleven etc fall into that category for their excellent records. you can see the ratings and list of companies here. 

How will this help kohls?

In right-sizing their stores,Kohlss should be able to not only get additional revenue by utilizing this space by bringing in a NCT, but also if the NCT could be a bakery or a coffee chain or a similar category, which can drive in more footfall and actually help customers with convenience, it can help kohls doubly.

Looking forward to learning more on this space.

If you liked this article, you would also like:
Electronic Shelf edge display in North american retail 
Amazon go-future is cool 
Why are companies big on payment systems? 

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