Kohl’s latest turnaround strategy echoes previous attempts, with executives confirming on Thursday that the current roadmap closely mirrors changes proposed under former CEO Tom Kingsbury.
Despite leadership changes, including the appointment of interim CEO Michael Bender, the retailer’s efforts to course-correct remain largely the same.
In November, Kingsbury admitted several missteps, including scaling back petites and private label offerings and removing jewellery counters to accommodate Sephora shop-in-shops.
Speaking this week, current executives said those reversals have already been implemented.
Jewelry, now reinstated in stores, saw a 10% sales rise in Q1, driven largely by Kohl’s credit card users. Petites sales also climbed by high teens.
Kohl’s has also made other adjustments: it expanded its impulse queue checkout initiative, placing the setup in 613 more stores, and made coupons valid across more brands.
The company also repositioned juniors displays near Sephora concessions, a proposal first floated in August. Sephora continues to be a bright spot, with net sales up 6% and comparable store sales rising 1% in Q1.
The final 105 Sephora shop-in-shops will open this spring.
Despite these efforts, analysts remain sceptical. Neil Saunders, managing director at GlobalData, told Retail Dive the company’s poor results are not due to market conditions but to mismanagement and a lack of clear direction.
He pointed to merchandise issues, a surplus of undifferentiated inventory, and high pricing that weakens Kohl’s appeal as a value retailer.
Leadership instability may also hinder progress. With no permanent CEO in place, Saunders warned the company could struggle to attract strong leadership willing to take on the challenge.
“So far, we have not seen much evidence that Kohl’s has any grand plan or vision,” he said. “Finding a new CEO might be difficult.”
In response, Kohl’s president Dave Timm acknowledged the ongoing nature of the work. “This is a turnaround and will continue to take time,” she said.
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