Dive Brief:
- Improvements to Kohl's omnichannel experience is reducing friction and creating more consistency, CEO Michael Bender said on a Q1 2026 earnings call Thursday.
- The retailer is updating its digital channels to improve discovery and navigation by adding more curated experiences, improved product spotlights and brand-level filters, according to Bender.
- Kohl’s is making trip assurance a priority by ensuring it has the right inventory in place for customers to get the exact color and size they want, Bender said on the earnings call. “Not only will this help create a better customer experience, it will also afford us the ability to increase our inventory turns and ensure freshness of seasonal receipts.”
Dive Insight:
Kohl’s is updating its experience in small but potentially impactful ways as it works to win back some of its most loyal shoppers. It remains to be seen whether the retailer’s efforts will be enough.
Many of Kohl’s efforts over the past year have been tailored around reengaging Kohl’s card customers, according to Bender. Comparable sales growth with this demographic was flat in the first quarter of 2026, an improvement over the prior quarter.
Online channels performed well, too. Traffic growth led to a 4% digital sales increase during the quarter, CFO Jill Timm said. “This performance is a direct result of our strategic investments to modernize and enhance our digital experience.”
The enhanced online experience, including the AI-powered gift finder launched last month, will help improve conversion and continue reducing friction over time, according to Bender.
“Together, these improvements are intended to make Kohl's more relevant, easier to shop and more connected across the customer journey,” Bender said.
Kohl’s focus on winning back customers with foundational improvements, rather than flashy upgrades, is similar to the strategy Target is employing. Both companies have a long way to go, but while Target posted a strong quarter, Kohl’s is still working to return to growth.
Comparable sales fell 1.1% year over year in the first quarter of 2026 — the best comparable sales performance in more than four years, Bender said in an earnings report. Net sales decreased 1.7% year over year to $3 billion.
Kohl’s in-store experience presented a mixed bag. The company gave private label brands Tek Gear and Lauren Conrad a makeover in the form of pseudo shop-in-shops, which helped drive strong performances. But Sephora’s shop-in-shops underperformed with sales down in the low single digits, according to Bender.
In the past, Kohl’s elevated Sephora experiences helped the retailer stand out from the competition. However, as Walmart introduces specially trained beauty associates and Target launches a dedicated in-store beauty experience, the Sephora partnership could lose some of its unique luster.
