Photo of a Kohl's store
Source: Kohl’s

Kohl’s is investing in home and gifting items and featuring both “underpenetrated” categories prominently in the front of the store to “inspire” customers as they enter.

“Some of this work is already underway,” said Tom Kingsbury, Kohl’s CEO since February, last week on the retailer’s first-quarter analyst call. “Our repositioning of gifting to the front of the store during the holiday season proved highly successful, and this positive trend continued across Valentine’s Day, Easter, and more recently, Mother’s Day. When you visit our stores now, you will see Americana-themed gifting products focused around the Memorial Day and the Fourth of July holidays.”

In-home, decor, outdoor and pet offerings are being expanded. This includes increased wall art selections, seasonal, patio furniture, camping and outdoor gear and tabletop. More space is being allocated to the pet category following a test last fall.

Jill Timm, CFO, said that positioning home decor in the front of the store incentivizes “more of an impulse” purchase similar to gifting.

Beyond gifting and home, beauty continues to be seen as a traffic driver with Sephora at Kohl’s continuing to outperform expectations, driving beauty sales ahead 150 percent in the first quarter year over year.

The core apparel business is being better balanced with increased offerings of “polished casual and dress clothing” in women’s and more suiting and dress shirts in men’s. Some activewear and other casual offerings are being deemphasized.

Kohl’s, as part of Mr. Kingsbury’s changes, is also “accelerating and simplifying our value strategies,” gradually replacing general promotion and online-only offers with targeted offers and clearance events for slow sellers on a more regular basis. Key-value items will be tested in private label apparel and home.

A third focus is maintaining lean inventories to “create greater liquidity to chase receipts and drive turnover,” Mr. Kingsbury said.

Focusing on impulse items at the store’s entrance is critical to initially getting customers in the shopping mood. “They’re seeing something new, something different, something very giftable and a different look, Mr. Kingsbury said. “We want to excite the customers every time they come into a Kohl’s store overall.”

BrainTrust

“I do think an inspiring front of store can be a springboard for Kohl’s, but they also need to invest in middle store layouts, which in the past has been problematic for Kohl’s”

David Spear

VP, Professional Services, Retail, NCR


“Kohl’s needs a real reason for being. Expanding/diluting assortments will not be enough to differentiate this brand.”

Lucille DeHart

Principal, MKT Marketing Services/Columbus Consulting


“If I were a retailer, I wouldn’t want a core tenet of my strategy to be impulse purchases. It feels as though Kohl’s is continuing on this slow burn path to irrelevancy.”

Jeff Hall

President, Second To None

Discussion Questions

DISCUSSION QUESTIONS: Will Kohl’s increased emphasis on home, gifting and impulse purchasing pay off? Are you encouraged by the recent moves being made by Kohl’s to revive sales growth?

Poll

Will highlighting home and gifting be more enticing or confusing to Kohl’s customers?

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12 responses to “Will Home And Gifting Inspire Kohl’s Customers to Spend More?”

  1. Neil Saunders Avatar
    Neil Saunders

    Kohl’s has a reasonable home offer which often looks and feels better than its apparel assortment. However, moving departments around is not the solution to all of its ills. It desperately needs to invest in its store estate, improve merchandising, make the energy of the stores feel better, and improve the quality and selection of its own brand products. And it needs to do this in apparel more than anywhere else. Basic moves do not resolve all of the company’s woes.

  2. Paula Rosenblum Avatar
    Paula Rosenblum

    Is Kohl’s trying to become the new JC Penney or Sears? I feel like Kohl’s has been thrashing for years in a miasma of re-orgs, different merchandise mixes and cost-cutting.

    The first question is: What do you want to stand for? And how do you do that well? They had the formula once, and then clearly lost it. I wish them all the best!

  3. Dick Seesel Avatar
    Dick Seesel

    Blocking and tackling (especially on the inventory management front) is always a good idea, although expansion of areas like pet, patio, etc. runs the risk of “more stuff” in front of the shopper instead of more focused assortments. (And my usual disclaimer that I worked for Kohl’s from 1982 to 2006.) If the goal of the huge investment in Sephora was to drive more women’s business — apparel, accessories and shoes — will this muddy the waters?

  4. David Spear Avatar
    David Spear

    I do think an inspiring front of store can be a springboard for Kohl’s, but they also need to invest in middle store layouts, which in the past has been problematic for Kohl’s. Plus, I’d double down on data driven insights that can open new ideas for shoppable, differentiated moments because the brand needs it. I’m rooting for Mr. Kingsbury.

  5. Lucille DeHart Avatar
    Lucille DeHart

    Kohl’s needs a real reason for being. Expanding/diluting assortments will not be enough to differentiate this brand. They should absorb the Bed Bath & Beyond audience with more small appliance assortments and expanded brand name bedding. Gifting will be seasonal and sporatic.

  6. Jeff Sward Avatar
    Jeff Sward

    I like the idea of gifting and impulse products being featured at the front of the store. It offers a natural premise for an ongoing rotation of offerings as holidays and seasons come and go. It’s one way to keep the storytelling fresh. But speaking to impulse is different than speaking to need. Customers don’t park their car at Kohl’s with the thought they they will be inspired at the entrance. They are there for some want or need. Why park at Kohl’s versus Target? The whole balance of the store needs focus and differentiation. The right blend of national and owned brands. And it’s about time that the owned brands began to fulfill more specific and focused brand promises.

    1. Katie Thomas Avatar
      Katie Thomas

      Agreed – also these gifting sections can feel quite random and it’s hard to have a consistent theme. I think Kohl’s needs to think a bit bigger strategically – are they trying to be more of a “treasure hunt” for the consumer? If so, that would impact more than just one department.

  7. Nicola Kinsella Avatar
    Nicola Kinsella

    The emphasis on ‘home’ will be interesting to watch. While there are definitely opportunities in the space, in part due to Bed Bath & Beyond store closings, people spent a lot on ‘home’ during covid. So growth in the space may not be as big as they hope. The ‘giftable’ impulse merchandising when people first walk in is a good idea. So is more emphasis on polished looks – something Kohl’s was a bit late in doing – and keeping inventory down. It’s encouraging to see, but only time will tell.

  8. Gene Detroyer Avatar
    Gene Detroyer

    Do you think the first question at a monthly C-Suite meeting is, “What should we try next?”

    Even before one reads the CEO’s comments, you know what he is going to say, and you know the company is flailing to find turn-around.

  9. Jeff Hall Avatar
    Jeff Hall

    If I were a retailer, I wouldn’t want a core tenet of my strategy to be impulse purchases. It feels as though Kohl’s is continuing on this slow burn path to irrelevancy.

  10. David Slavick Avatar
    David Slavick

    As detailed and experienced this gives the female cord shopper another reason to visit the store for either planned or impulse purchases. Turning the front of the store into a combination of Bed, Bath & Beyond, Pottery Barn, HomeGoods vs. having a Lands End in the front of store is a solid merchandising move with seasonal turnover to keep it fresh. The big question is how do you improve your margins while your loyal shoppers have Kohl’s Cash and big discounts ingrained into the planning behavior?

  11. Rachelle King Avatar
    Rachelle King

    If Kohls can capture interest, excitement and intent at entrance, then all the better. This is one department store that still has good potential. Experimenting with formats, partners and merchandising to fine tune their sweet-spot in a evolving retail landscape is a smart move.

12 Comments
oldest
newest
Neil Saunders
Neil Saunders
2 months ago

Kohl’s has a reasonable home offer which often looks and feels better than its apparel assortment. However, moving departments around is not the solution to all of its ills. It desperately needs to invest in its store estate, improve merchandising, make the energy of the stores feel better, and improve the quality and selection of its own brand products. And it needs to do this in apparel more than anywhere else. Basic moves do not resolve all of the company’s woes.

Paula Rosenblum
Paula Rosenblum
2 months ago

Is Kohl’s trying to become the new JC Penney or Sears? I feel like Kohl’s has been thrashing for years in a miasma of re-orgs, different merchandise mixes and cost-cutting.

The first question is: What do you want to stand for? And how do you do that well? They had the formula once, and then clearly lost it. I wish them all the best!

Dick Seesel
Dick Seesel
2 months ago

Blocking and tackling (especially on the inventory management front) is always a good idea, although expansion of areas like pet, patio, etc. runs the risk of “more stuff” in front of the shopper instead of more focused assortments. (And my usual disclaimer that I worked for Kohl’s from 1982 to 2006.) If the goal of the huge investment in Sephora was to drive more women’s business — apparel, accessories and shoes — will this muddy the waters?

David Spear
David Spear
2 months ago

I do think an inspiring front of store can be a springboard for Kohl’s, but they also need to invest in middle store layouts, which in the past has been problematic for Kohl’s. Plus, I’d double down on data driven insights that can open new ideas for shoppable, differentiated moments because the brand needs it. I’m rooting for Mr. Kingsbury.

Lucille DeHart
Lucille DeHart
2 months ago

Kohl’s needs a real reason for being. Expanding/diluting assortments will not be enough to differentiate this brand. They should absorb the Bed Bath & Beyond audience with more small appliance assortments and expanded brand name bedding. Gifting will be seasonal and sporatic.

Jeff Sward
Jeff Sward
2 months ago

I like the idea of gifting and impulse products being featured at the front of the store. It offers a natural premise for an ongoing rotation of offerings as holidays and seasons come and go. It’s one way to keep the storytelling fresh. But speaking to impulse is different than speaking to need. Customers don’t park their car at Kohl’s with the thought they they will be inspired at the entrance. They are there for some want or need. Why park at Kohl’s versus Target? The whole balance of the store needs focus and differentiation. The right blend of national and owned brands. And it’s about time that the owned brands began to fulfill more specific and focused brand promises.

Katie Thomas
Katie Thomas
  Jeff Sward
2 months ago

Agreed – also these gifting sections can feel quite random and it’s hard to have a consistent theme. I think Kohl’s needs to think a bit bigger strategically – are they trying to be more of a “treasure hunt” for the consumer? If so, that would impact more than just one department.

Nicola Kinsella
Nicola Kinsella
2 months ago

The emphasis on ‘home’ will be interesting to watch. While there are definitely opportunities in the space, in part due to Bed Bath & Beyond store closings, people spent a lot on ‘home’ during covid. So growth in the space may not be as big as they hope. The ‘giftable’ impulse merchandising when people first walk in is a good idea. So is more emphasis on polished looks – something Kohl’s was a bit late in doing – and keeping inventory down. It’s encouraging to see, but only time will tell.

Gene Detroyer
Gene Detroyer
2 months ago

Do you think the first question at a monthly C-Suite meeting is, “What should we try next?”

Even before one reads the CEO’s comments, you know what he is going to say, and you know the company is flailing to find turn-around.

Jeff Hall
Jeff Hall
2 months ago

If I were a retailer, I wouldn’t want a core tenet of my strategy to be impulse purchases. It feels as though Kohl’s is continuing on this slow burn path to irrelevancy.

David Slavick
David Slavick
2 months ago

As detailed and experienced this gives the female cord shopper another reason to visit the store for either planned or impulse purchases. Turning the front of the store into a combination of Bed, Bath & Beyond, Pottery Barn, HomeGoods vs. having a Lands End in the front of store is a solid merchandising move with seasonal turnover to keep it fresh. The big question is how do you improve your margins while your loyal shoppers have Kohl’s Cash and big discounts ingrained into the planning behavior?

Rachelle King
Rachelle King
2 months ago

If Kohls can capture interest, excitement and intent at entrance, then all the better. This is one department store that still has good potential. Experimenting with formats, partners and merchandising to fine tune their sweet-spot in a evolving retail landscape is a smart move.