Kohl’s Focuses on eCommerce as Low-Income Shoppers Face Pressure
Kohl’s turnaround efforts are being challenged by the continued economic pressures facing its core customers.
The department store chain reported earnings Tuesday (March 10) showing net sales down 3.9% for the quarter and 4% for its full year. Kohl’s also issued a cautious outlook for the year to come, projecting comparable sales would be either flat or fall 2%.
Speaking during an earnings call, CEO Michael Bender characterized 2025 as a period of “substantial change” as Kohl’s continues to embark on a turnaround program.
“While we have made progress addressing issues and strengthening areas of our foundation, that work will continue to be the focus for most of 2026,” Bender said.
The new earnings highlight a shift in consumer behavior, as shoppers become increasingly selective with their discretionary spending.
“Our core low- to middle-income customers continue to face financial pressure, and they are seeking value,” Bender told analysts.
He added that these consumers are “thoughtful with how they are spending” and that Kohl’s needs to offer “breakthrough pricing” to remain competitive during high-traffic holiday periods.
To address these shifts, Kohl’s is leaning into its proprietary brand portfolio—including names like Lauren Conrad and Sonoma—to provide an “opening price point” that connects with budget-conscious families.
The company is also expanding its in-store “Deal Bar” and “Impulse” programs featuring items priced under $10 to capture incremental sales.
Outside the sales floor, Kohl’s is investing in its digital infrastructure to better compete in the modern economy. Bender spotlighted a focus on modernizing “foundational data architecture” to ensure the company is “fully prepared for a future driven by AI and agent technology”
The company said it also prioritizes “advanced personalization” and “contextual relevance” to make digital interactions more meaningful for shoppers.
This focus on digital interactions comes as eCommerce growth continues to outpace overall growth of the retail sector, as new Census data shows.
The growth of online commerce is connected not only to technology adoption but to changing consumer financial conditions. Research from PYMNTS Intelligence, published in January, shows that financial pressure is influencing how and where people choose to shop.
According to that data, 30% of consumers had made an online retail purchase within the previous 30 days, a number that represents a 13% year-over-year increase.
“Over the same period, participation in in-store retail declined by six percentage points, suggesting that a portion of consumer activity is moving from physical locations to digital channels,” PYMNTS added.
Bender became Kohl’s official CEO last November, the retailer’s third CEO in as many years as the company deals with a years-long period of dwindling sales and executive turnover.
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