Kohl’s wants to make it easy for customers to engage with the company however they’d like, whether online or in-store, executives said on a Q4 2025 earnings call Tuesday.
However, the changes may not address the brand’s core CX problems.
The retailer is modernizing its site and data architecture to improve discoverability and prepare for AI, according to CEO Michael Bender, who officially took the helm in November. It will improve in-store signage for better wayfinding and add communication to help customers find the right product and fit for their needs.
The company plans to invest in searchability and improve in-stock rates to ensure what customers find online is available in-store. “A frictionless experience starts with reestablishing trip assurance for our customers,” Bender said on the earnings call.
The omnichannel investments are a step in the right direction, but the retailer’s challenges run deeper, according to Neil Saunders, managing director at GlobalData Retail.
“Linking stores and online in terms of things like stock availability is sensible but, again, it is not the core problem that Kohl’s faces,” Saunders said in an email. “Its stores are messy, disjointed, and hard to shop. Basically, the experience is not good — and that’s the central issue they need to address.”
While Kohl’s is making its omnichannel experience a priority, the brand is addressing some elements of its store experience. Kohl’s is working on curating the right assortment and using mannequins and in-store showcases to improve storytelling, according to CFO Jill Timm.
“Those are all important aspects of us being able to actually bring some fun back to the Kohl's environment and make sure that what we're offering is not just an item at a price, but also a story around it,” Bender said.
The company also needs to enhance its core proposition — including assortment, pricing and private label products — to move the dial with customers, Saunders said. Kohl’s deserves credit for the steps it is taking, “but they’re a bit like painting the walls while the roof is still leaking, in that they don’t address the central problems that are leading to slumping sales.”
The retailer’s poor experience was reflected in Kohl’s earning results. Comparable sales fell 2.8% year over year in the fourth quarter of 2025, according to an earnings release. Net sales fell 3.9% year over year to $5 billion.
Kohl’s leadership recognizes that the company has work ahead, and their thinking seems to be aligned with Saunders’ in the long term.
“We've got to get the product right because that's what people ultimately come for,” Bender said. “The experience and all the other things that are wrapped around it are important as well, and we're working on those as well. But we've got to get the product right to make sure that’s what the customer continues to come back around for.”
