How Kohl’s lost its way — and is trying to become relevant again

By Finance News On Jun 27, 2026

Kohl’s was once a retail darling, carving out market share as a department store catering to the middle-income American consumer with coupons and deals that drove loyalty.

But over the past five years, Kohl’s stock has lost nearly 70% of its value, plummeting as the retailer reported weak sales.

As department stores struggle to stay relevant and middle-income consumers face budget pressure, Kohl’s is now trying to reinvigorate sales by leaning back into its core value proposition and investing in the store experience to ensure customers find what they need and keep coming back for more. Though Wall Street analysts believe the retailer has more work to do, investors have started to take notice: Kohl’s shares have climbed more than 130% in the past year.

“For us, it’s really about making sure that we are picking a lane,” CEO Michael Bender told CNBC. “Sitting in the middle of the retail landscape like we do, selling the products like we do, that are admittedly more discretionary than others, means that you have to pick a lane and decide who you’re serving, and that you understand that customer really, really well.”

A Kohl’s store in Sun Valley, California, July 22, 2025.

Alisha Jucevic | Bloomberg | Getty Images

The company, which went public in 1992, saw its peak in the early 2000s as department stores gained traction around the U.S. Kohl’s was known for its value, proprietary brands, coupons and Kohl’s cash rewards, enjoying success along with other department store chains like Macy’s and Bloomingdale’s.

At its height, Kohl’s commanded major market share, with its stock reaching an all-time high of $82 per share in late 2018 and the company reporting revenue of $20.23 billion for the fiscal year ended February 2019.

Kohl’s 5 year chart

But soon after, the retailer began to lose traction. While department stores have broadly struggled during that time, Kohl’s also faced specific issues that contributed to revenue declines.

“As a department store, they’ve kind of been struggling for a number of years,” Chuck Grom, an analyst at Gordon Haskett, told CNBC.

Now, the company is working to stabilize its business, return to growth and win back a customer base that Bender said Kohl’s never completely lost.

Losing its core

Through changing its assortment, limiting coupon usage and leaning into off-price retail instead of proprietary brands, Kohl’s “alienated” its core customers, forcing them to go elsewhere, Grom said.

Grom, who has been covering Kohl’s for years, said the retailer went wrong when it leaned into being an off-price retailer.

“I think companies need to realize who their customer bases are and not try to become somebody they’re not,” he said. “I think too often retailers want to become what somebody else is, and that often can backfire on you.”

It’s a move that Bender said set Kohl’s down the wrong path, leading to years of stagnant sales, declining foot traffic and “drifting” business strategies. The company saw…