Does Bend need a Kohl's?

Checked out the new Kohl's department store at the Bend River Promenade on its opening Sunday. It's nice, well-lit and has ample merchandise.

But, it's right next door to Macy's, which expanded in the past couple of years to take over most of the north half of the mall. Macy's sells a higher grade of clothing than Kohl's at sometimes reasonable prices. Also, Kohl's is a combination of a J.C. Penney's and Fred Meyer's clothing section. It doesn't offer lower prices or greater selection. It doesn't have better service, even though it claims to have hired 170 mostly part-time workers. That number will undoubtedly drop once the newness of Kohl's wanes in the region.

So why did Kohl's, after delaying its opening for about a year because of the poor economy, open a store in Bend? Unemployment in the region averages above 15 percent, which is well above the national average of just under 10 percent.

There are no market forces compelling Kohl's to be in Bend.

Rather, this is purely a business school ploy to prop up its stock price to show investors that the company sales are increasing. Yes, the sales will increase because there are more stores, but per-store sales are the real indicator.

Because Wal-Mart hasn't added as many stores in the sour economy, it's per store sales are off. And Wal-Mart was the one company touted to benefit from the lousy economy.

Kohl's stock is trading at around $54 per share. The 52-week range is 32.50-60.89.

Here's what Morningstar, the stock-rating service, says about Kohl's:

"Kohl's has had great success with its conveniently located stores that cater to consumers in search of brand-name goods at value prices. Although the discretionary retailer has not been immune to the slowdown in consumer spending, we think its strong balance sheet, national footprint, and low-cost operation will help it weather the current economic storm and gain share longer-term as smaller, more leveraged competitors are forced to shutter their doors."

Notice the phrase "low-cost operation." That means it sells cheap stuff from Asia and the staff will definitely dwindle in size. This makes Kohl's like every other retailer in America.

Kohl's should learn what happened to Gottchalks on Bend's south side. That mid-tier department store, much like Kohl's, lasted less than a year before the whole company went out of business.

Kohl's likely won't go out of business, but it represents what is wrong with our economy. The investor of Kohl's stock is far more important than anyone else, certainly the shopper, or, heaven forbid, the employee. Whether shoppers buy at Kohl's is almost irrelevant if the investor keeps buying Kohl's stock.

That's all the CEO needs to worry about: the stock price. Eventually, investors will say, "Hey, no one really shops at Kohl's." The stock will drop. The CEO will get fired. And maybe, aggressive expansion will seem fiscally irresponsible and downsizing will become imperative. In that scenario, Kohl's in Bend would be a likely candidate for being shuttered.

If that comes to pass, let's speculate what will fill that big-box eyesore along the Bend Parkway. What does Bend need that it doesn't have already?