Kohl's rose to its peak as a department store in the 2000s, with a focus on a strong in-store experience, coupons and rewards. Now, after years of stagnant sales and a rough patch on Wall Street, Kohl's is trying to get back to what made it a household name.In 2022, Retail Archaeology asked Kohl's: Who Would Want To Buy This? In that same post, I embedded a CNBC video from 2020 asking "Can Kohl's survive?" Last year, Company Man asked Kohl's - The Rise and Fall? Now CNBC has answered that question in the affirmative. If nothing else, Kohl's stock price, which is what CNBC really cares about, has fallen. The chain is also shrinking, as evidenced by my wife going to the closest store and finding that it has closed, apparently one of 27 stores that closed last year. Kohl's also has no plans to expand.
In addition to the identity and management issues both CNBC and Company Man reported, The Street article I linked to above cited competition.
Like many traditional department stores, Kohl’s is navigating intensifying competition from both digital and value-focused retailers. E-commerce rivals such as Amazon, Temu, and Shein continue to capture online shopping demand, while off-price chains including Ross Stores and TJMaxx attract budget-conscious consumers with lower pricing.If private equity doesn't appear in the story, Amazon probably will.
At the same time, macroeconomic uncertainty has reshaped consumer behavior, with shoppers increasingly prioritizing value and limiting discretionary spending.
We probably won't be Kohl's shoppers in the future, as the nearest store is now nearly seven miles away instead of two. We'll go that far for Costco, but not for a department store. If so, there are better stores that distance, like a Macy's, and a Target closer.
That's a wrap for today. Stay tuned for a climate post tomorrow.
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