Loyalty Made Easy: Kohl’s Simplifies Coupons, Promotions & Experiences

For decades, Kohl’s has been a household name in American retail. Known for its affordable fashion, home goods, and frequent discounts, the company has carved out a space between traditional department stores and big-box retailers like Target and Walmart. But in recent years, Kohl’s has faced significant challenges—from the rise of e-commerce to shifting consumer behaviors.

A Brief History of Kohl’s

It was founded in 1962 by Maxwell Kohl, who first opened supermarkets in Wisconsin before expanding into department stores. Over the decades, the company grew into a national chain with more than 1,100 locations across 49 states.

By the 1990s and early 2000s, it was known for its value-driven shopping experience—offering mid-range brands at discounted prices, generous sales, and its popular Kohl’s Cash rewards program.

But as Amazon, Target, and fast-fashion retailers gained ground, struggled to maintain its dominance. Foot traffic declined, and the retailer found itself competing not only with department stores but also with off-price retailers like TJ Maxx and Ross.

Kohl’s Current Strategy in 2025

1. Partnering with Sephora

One of the biggest moves Kohl’s has made in recent years is its partnership with Sephora. By integrating Sephora shops into Kohl’s stores, the company has managed to attract new, younger, and beauty-focused customers. Beauty remains one of the strongest retail sectors, and this partnership helps Kohl’s tap into a fast-growing category.

2. Reinventing Store Formats

It has been experimenting with smaller-format stores in urban and suburban areas. These locations focus on essentials, activewear, and beauty, making them more convenient and curated for modern shoppers.

3. Simplifying Discounts and Loyalty Programs

It has long been known for its stackable discounts, coupons, and Kohl’s Cash. While this has kept loyal customers happy, it also created confusion for new shoppers. In response, Kohl’s is streamlining promotions to make pricing clearer while still offering rewards.

4. Expanding Active and Casual Wear

The pandemic accelerated demand for casual fashion and athleisure, and Kohl’s leaned into this by expanding partnerships with brands like Nike, Adidas, Under Armour, and Levi’s. In 2025, this category continues to be a major growth driver.

5. Digital and Omnichannel Investments

Like many retailers, it has invested heavily in e-commerce and omnichannel services such as:

• Buy Online, Pick Up In-Store (BOPIS)

• Curbside pickup

• Same-day delivery via partners

• A revamped mobile app for easier browsing and rewards tracking

Strengths of Kohl’s

• Wide Product Range: Offers apparel, home goods, beauty, and activewear all under one roof.

• Sephora Partnership: Attracts younger demographics and boosts store traffic.

• Value Pricing: Known for discounts and Kohl’s Cash rewards.

• Strong Nationwide Presence: Over 1,000 locations across the U.S. make it easily accessible.

• Loyal Customer Base: Longtime shoppers remain dedicated to Kohl’s promotions.

Weaknesses and Challenges

• Brand Identity Issues: Kohl’s often struggles to define whether it’s a traditional department store or a discount retailer.

• Heavy Reliance on Discounts: Frequent promotions may undermine brand value.

• Competition: Faces pressure from Amazon, Walmart, Target, and off-price stores.

• Foot Traffic Declines: Like most department stores, in-person visits have dropped compared to pre-2015 levels.

• Slow International Growth: Unlike some competitors, Kohl’s remains a U.S.-only chain.

Kohl’s vs Competitors

Kohl’s strongest edge remains its Sephora partnership and nationwide presence, though it still trails Target in trend appeal and Amazon in convenience.

Financial Outlook

In recent years, it has faced sales declines and pressure from investors to reinvent itself. However, the retailer is banking on its Sephora integration, loyalty revamp, and store reformatting to drive a turnaround.

As of 2025, industry analysts remain cautiously optimistic. While Kohl’s may not return to its early-2000s dominance, it could stabilize as a niche retailer focused on value-driven families and beauty shoppers.

Why Kohl’s Still Matters

Despite challenges, continues to play an important role in the U.S. retail ecosystem. Here’s why:

1. Accessible Pricing: It offers mid-range brands at prices most families can afford.

2. Community Presence: Stores are often located in suburban areas where shoppers value convenience.

3. Beauty & Activewear Growth: Two categories that remain resilient even in economic downturns.

4. Rewards System: Few retailers offer rewards as beloved as Kohl’s Cash.

The Future of Kohl’s

Looking ahead, Kohl’s future depends on three critical factors:

• How well it leverages Sephora to attract new shoppers

• Its ability to simplify pricing without alienating loyal coupon lovers

• Continued investments in digital convenience and smaller-format stores

It can execute these strategies effectively, it will remain a relevant and resilient player in the ever-changing retail market.

Conclusion

While it faces tough competition and shifting consumer habits, the retailer is actively reinventing itself for 2025 with strategic partnerships, streamlined loyalty programs, and a renewed focus on value-driven shopping.

For consumers, still represents a reliable place to shop for affordable clothing, home goods, and beauty products, with the added bonus of one of the most rewarding loyalty programs in retail.

In a world where traditional department stores are struggling, it has shown it can adapt and survive—and with the right moves, it may yet thrive in the years ahead.