Kohl’s makes bold store change to lure back customers

Over the past few years, Kohl’s has struggled to attract customers to its stores despite recent efforts to boost low sales. In response to these ongoing challenges, the retailer is rolling out a bold new division across all locations to win back a key group of customers.

Kohl’s net sales fell nearly 3% year over year in the third quarter of 2025. latest earnings report. Also created operating income was $73 million in the quarter; That’s about 25% lower than what he earned during the same period in 2024.

Also recently Placer.ai data showed that foot traffic at Kohl’s stores decreased 2.4% year-over-year in the quarter.

“Unfortunately. Kohl’s has been one of the worst performers in retail in terms of sales and sales. market share “It’s been falling since 2019,” said GlobalData analyst Neil Saunders. November investigative note obtained by CBS News. “This chronic underperformance is directly linked to operational sloppiness and the absence of a clear strategy.”

The decline in consumer demand comes after Kohl’s made several bold changes to its stores to fix weak sales.

For example, last year, it reintroduced petite sizes into stores following customer complaints and increased investment in its jewelry business. After removing many brands from its coupon selection, Kohl’s has also increased the number of coupons it offers to its customers.

during a earnings call In November, Kohl’s CEO Michael Bender said the company continues to see customers remain cautious about their discretionary spending.

“We continue to operate in an environment where our customers are increasingly choosing. discretionary income “The pressure is on,” Bender said. “This is especially notable for our lower-to-middle-income consumers, as well as our younger customers. These customers are becoming more sophisticated and looking for more value.”

It’s no surprise that Kohl’s is seeing this shift in shopping behavior, as consumer sentiment has remained low in recent months due to concerns about the economy.

A. Survey from McKinsey & Company In December last year it was revealed that 37% of consumers plan to reduce their clothing spending over the next three months as they fight the war inflation and while living costs have increased, 35% plan to spend less on shoes.

Amid this trend, Kohl’s announced that it is adding a new section to its stores called “Deal Bar” aimed at price-conscious customers. latest press release.

In the section at the front of each store, items such as “gifts, seasonal items and daily necessities” are sold for $10 or less.

Some of the items customers can find in this section include purpose-built storage options, home renovation products, sportswear, DIY craft kits for kids, party supplies, Easter basket fillers, etc. Contains.

Related: Kohl’s is taking serious steps to fix customer behavior issues

“Conveniently located in the front of every store, Deal Bar offers fun, practical and timely products that are refreshed throughout the year, ensuring our customers always have something new to discover,” Kohl’s said in the press release. said Kohl’s.

Customers can also shop at Deal Bar. Kohl’s websiteWhere there is a section for items costing $5 or less.

Kohl’s’ move follows in the footsteps of many of its top competitors, which have recently expanded their affordable product assortments for customers.

Amazon in 2024, Amazon Transportation section of the website where it sells items for $20 or less.

More Retail:

Recently, Target has had multiple launches. 2,000 new beauty products Last month, 90% of them were priced under $20 in stores.

This strategy of offering low-priced assortments may be particularly useful for retailers this year; because more and more consumers across the country are planning to become more stringent with their budgets due to growing concerns about their finances. Smarty’s latest survey.

• Approximately 60% US consumers fear prices are increasing every day 41% We are most concerned about inflation not falling fast enough.

• Only 19% Percentage of consumers who say they feel very optimistic About their financial outlook for 2026 51% Describe their financial future as follows: uncertain.

• for 2026, 45% to wait spend almost the same Like they did in 2025, only 16% to wait spend less.

• But, 35% We plan to spend more carefully and 23% they mainly focus on the basics.
  Source: Smarty

“What we see is panic or retreatSmarty CEO Vipin Porwal said: expression. “Consumers are preparing by budgeting more carefully, monitoring prices more closely, and making informed choices to maintain their financial stability in an environment where inflation is here to stay.”

Related: Home Depot and Lowe’s quietly gaining new rival

This story was first published by . Street First appeared on February 18, 2026 Retail section. Add TheStreet at: Preferred Source by clicking here.