Kohl’s (KSS) is currently battling a concerning slump in sales due to a drastic change in customer behavior in stores.
Kohl’s second-quarter earnings report for 2025 flagged that its comparable sales dropped by 4.2% year-over-year. Recent data from Placer.ai also found that customer visits at Kohl’s same-store locations decreased by 3.4% during the quarter.
During an earnings call on Aug. 27, Kohl’s Interim CEO Michael Bender said that the company’s women’s category is struggling with sales. The men’s and kids categories faced the steepest sales decline, while footwear and small electronics underperformed during the quarter.
Bender attributed the weak sales to consumers pulling back their spending in response to economic challenges such as inflation and the growing threat of tariffs.
“Consumers continue to be pressured and are being choiceful with their purchases,” said Bender. “Specifically, our lower- to middle-income customers remain the most challenged, while our higher-income customers have proven to be more resilient. These lower-to middle-income customers continue to prioritize value and are trading down into lower opening price point products.”
Kohl’s recent sales slump comes after it boosted its investment in its jewelry business and added petites back into stores after receiving customer complaints. It also increased the number of coupons it offers customers after excluding many brands from its coupon selection.
Image source: Joe Raedle/Getty Images
Kohl’s tweaks annual sales event to reverse low sales
Amid low sales, Kohl’s has made another bold move to win back shoppers as the holiday season kicks off. The department store chain has unveiled its fall savings event, which has been extended from three days to four this year.
The event, which offers cyber deals to customers, will run between Oct. 6 and Oct. 9. In a recent press release, Kohl’s promises the event will “deliver deep discounts on thousands of must-have products across home, apparel, footwear, beauty, accessories, and more, both in-store and online at Kohls.com.”
Related: Kohl’s takes drastic action to fix concerning customer behavior
In addition, Kohl’s is offering customers 25% off qualifying purchases, free shipping on all online orders and $10 in Kohl’s Cash for every $50 spent on qualifying merchandise during the four-day event.
Some of the deals Kohl’s has rolled out for the event include 75% off Sephora Collection Beauty products, 30% off toys, and up to 40% off coats and jackets.
Consumers are expected to pull back spending during the holidays
Kohl’s big move to attract early holiday shoppers comes during a time when consumer sentiment continues to drop as the holiday shopping season kicks off.
According to recent data from the University of Michigan, U.S. consumer sentiment fell in September to its lowest point since May amid growing concerns about tariffs causing higher prices for everyday goods.
The University of Michigan’s preliminary September sentiment index found that consumer sentiment dropped from 58.2 in August to 55.4 this month, a decline of 4.8%.
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“Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation,” said University of Michigan Surveys of Consumers Director Joanne Hsu in a statement. “Likewise, consumers perceive risks to their pocketbooks as well.”
Holiday retail sales are also expected to slow down in growth this year. According to a recent report from Bain & Company, the firm predicts that retail sales for November and December will grow 4% year-over-year, reaching $975 billion. However, this increase falls below the 10-year average of 5.2%, signaling a more cautious consumer this holiday season.
“This holiday season will be a mixed one for US retailers,” said Aaron Cheris, a partner in Bain’s Retail practice, in a statement. “Consumers are cautious and facing financial pressure, but they are also feeling the lift from higher wages and a strong stock market. Leading retailers will strike the right balance — leaning into value, creating warm human experiences while implementing new technologies, and capitalizing on big events like Black Friday to capture share from competitors.”
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