Dive Brief:
- Kohl’s is continuing to work on improving the experience across its in-store and online shopping platforms as the retailer pursues a turnaround, executives said on a Q2 2025 earnings call Wednesday.
- The retailer is optimizing the store layout with adjustments to where products are placed in relation to each other, according to interim CEO Michael Bender. The company also continued to simplify its coupons, reducing the number of brands excluded from discounts.
- “The goal for all these efforts is to create a more enjoyable and dependable shopping experience at Kohl's,” Bender said during the call.
Dive Insight:
Kohl’s experience strategy has held steady for multiple quarters despite leadership changes, and executives see the brand making slow but steady progress.
The retailer has focused on improving the in-store experience since at least 2023, including dedicating space near the checkout line to impulse purchases last year. But the experience is still not where leaders want it to be.
“We know we currently have an inconsistent in-store experience without a unifying point of view of what we want the customer to feel when they walk in the store,” Bender said.
Kohl’s will make changes to in-store marketing and visual presentation to enhance inspiration, according to Bender. This includes rethinking assortment and adding more manikins to show off clothing better than hanging it on a rack.
Kohl’s will continue investing in its inventory to improve in-stock levels as well. It’s in good company. Target, which is also working to improve the consistency of its shopping experience, is making higher in-stock rates a priority, too.
The retailer’s performance topped expectations but was still largely negative. Net sales decreased 5.1% year over year to $3.3 billion in the second quarter of 2025, according to a company earnings report. Comparable sales decreased 4.2% year over year.
Even though growth is still negative, Bender expects the retailer’s investments to pay off over a longer period.
“We have a broad range of initiatives in place, some that will deliver short-term gains,” Bender said. “But over the long haul, we know that growth is where we need to get back to, and that's the focus for us.”
