Kohl's Seeks Relevance After Years of Strategic Drift

Kohl's, once a leading U.S. department store, has entered a turnaround after a series of strategic shifts that eroded its core customer base. The retailer’s move toward an off-price model, reduced coupon use, and the removal of proprietary brands alienated shoppers, prompting CEO Michael Bender to refocus on value pricing, proprietary labels, and expanded coupons to stabilize sales.

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The decline aligns with a broader contraction in U.S. department stores, where inflation-driven price sensitivity and competition from Walmart, T.J. Maxx, Amazon, and off-price specialty brands have eroded market share. Many retailers have struggled to maintain relevance as consumers prioritize low price and brand variety.

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Kohl’s stock has fallen nearly 70 % over five years, yet it rose 130 % in the past year, reaching $19.23, up 0.71 % on the reporting day. The company reported its best comparable-sales growth in four years, but foot traffic and revenue remain below prior peaks.

Kohl's aims to revive growth by returning to co.. .

Bender acknowledged that recent category cuts—such as eliminating petites and jewelry—removed items “not substitutable” for shoppers. He said Kohl’s had “stopped listening to the customer” and is now reinstating proprietary brands, value pricing, and coupon incentives to win back loyalty.

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Analysts argue Kohl’s “leaned into being an off-price retailer” and lost sight of its core audience, warning that retailers “trying to become somebody they’re not” risk backfiring. Blake Anderson noted persistent doubts about department-store growth amid “lots of competition” from direct-to-consumer off-price brands. Sonia Lapinsky said shifting strategies—from athleisure to fashion to private label—have created “confusion” for value-seeking shoppers.

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Recent stock gains suggest short-term optimism, yet Wall Street remains cautious about long-term recovery. The sources do not provide direct consumer sentiment data or category-level sales breakdowns, leaving uncertainty about the effectiveness of the new value-focused plan.

Kohl's aims to revive growth by returning to co.. .

• “As a department store, they've kind of been struggling for a number of years,” — Chuck Grom, analyst, Gordon Haskett

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• “There always is this concern that can department stores actually grow for any meaningful period of time? There's lots of competition in terms of off-price specialty brands going direct-to-consumer,” — Blake Anderson, analyst, Jefferies

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• “The space has really evolved over time, and I think the way that Kohl's has competed has been significantly tied to value, and so winning that customer based on value is becoming very difficult.” — Sonia Lapinsky, managing director, AlixPartners

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• “We made some decisions where we took away categories, for example, petites and jewelry, we've spoken about that in previous earnings calls and other public discussions, those are categories, as an example, that are not substitutable,” — Michael Bender, CEO, Kohl’s

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Kohl’s intends to continue focusing on proprietary brands, value pricing, and coupons as it seeks to sustain recent sales momentum.

Kohl's aims to revive growth by returning to co.. .