Since it opened its first location in 1962, Kohl’s has been one of the country’s leading department stores.
But over the past few years, as discount retailers like Ross Dress for Less, TJ Maxx, and Burlington gain a larger foothold, the Midwest-based chain has started to slip. As consumers become more price-conscious, they’re increasingly turning to chains with a better value proposition.
According to data from Placer.ai, in 2025, some 62.9% of shoppers visited off-price retailers, while just 37.1% preferred department stores. That’s a major drop from 2019, when 51.8% of shoppers were visiting department store aisles, and only 48.2% were hitting up discount retailers.
Of course, some department stores are faring better than others. Retailers like Von Maur, with a strong regional identity, or Nordstrom, with a premium, service-oriented identity, have actually seen some growth in visits.
However, those without defining features or strong customer experience propositions have been hit particularly hard by the change in consumer behavior.
During Q4 2025, Placer.ai says that Kohl’s saw a 5% drop in total number of visits. A number that the company will be forced to address during its upcoming Q4 2025 earnings call.
Kohl’s is expanding its private label offerings
In February, Kohl’s announced that it would be expanding its private label offerings with FLX Golf and Sea + Sky.
FLX Golf is an addition to the existing menswear line focused on “deliver[ing] premium, versatile activewear that fits lifestyle and budget.”
Sea + Sky, on the other hand, is aimed at a completely different market segment: teen and tween girls. Featuring everything from basics to dress-up styles, the line aims to help girls “look as good as they feel both inside and out of the classroom.”
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The retailer also launched a By Kohl’s campaign earlier this month, with the goal of helping shoppers more easily identify its private label items.
“By Kohl’s provides a distinct point of differentiation for us, as we continue to develop unique collections that offer the sharp price points our customers expect without compromising on the modern aesthetic they’re looking for,” Chief Merchandising Officer Nick Jones said in a statement.
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The focus on private label development is a smart gamble. According to data from Numerator, millennial and Gen Z shoppers are becoming increasingly likely to choose a store brand or private label over a name brand. Some 76% of millennials believe name brands are as good or better than national brands, and 73% of Gen Z agree.
“In a cost-conscious retail climate, private label has become a key lever for margin growth,” Numerator says.
Kohl’s is also betting on its partnerships
But Kohl’s isn’t putting all of its eggs in one basket.
The company also announced new and expanding partnerships with brands like Babies ‘R Us and Sephora back in February.
Placed near existing toy sections, the new Babies ‘R Us gifting stations include a curated assortment of items from popular baby brands like Fisher Price and Frida Baby. The goal, Kohl’s says, is to make gifting and quick trips easier for parents.
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A mainstay in Kohl’s stores for the last few years, Sephora has been one of the company’s most profitable partnerships. During the company’s Q3 2025 earnings call, CEO Michael Bender told investors “We continue to be pleased with this partnership, which delivered nearly a $2 billion business in four years. Sephora is outstanding at offering discovery, innovation, and newness to customers.”
This spring, the Sephora counters will be adding a number of popular new product lines including MAC Cosmetics, Salt & Stone, and Dermalogica.
The Kohl’s forecast
Given Kohl’s floundering position, analysts at MarketWatch are keeping an eye on a few key things:
- Kohl’s sales, which are projected to have dropped from $5.18 billion in Q3 to $5.2 billion in Q4
- Kohl’s profits, which are expected to have a climbed to $92 million
- Kohl’s comparable sales, which are expected to be down by 1.5%
Source: MarketWatch
