Dive Brief:
- Kohl’s will maintain delivering an improved shopping experience as one of the core pillars of its turnaround plan, according to executives on a Q1 2025 earnings call last week. The company is staying the course under interim CEO Michael Bender, who was appointed last month after then-CEO Ashley Buchanan was fired for conflicts of interest.
- The retailer’s CX plans center on optimizing its store layout, offering more sources of product inspiration in-store and online and building trip assurance with improved in-stock rates, according to CFO Jill Timm.
- Kohl’s is expediting the rollout of its updated checkout space, called impulse queues, to an additional 613 stores, according to Timm. The retailer aims to have the queues, which consolidate the checkout line into a smaller space lined with impulse purchases, in nearly all stores by the third quarter of 2025.
Dive Insight:
Kohl’s wants to bust friction no matter where customers shop as it continues to focus on simplifying the core shopping experience.
“Our customers desire an easier and more reliable shopping experience, both in stores and online,” Timm said.
While the changes made so far have shown some minor signs of improvement, they have failed to move the needle for Kohl’s as a whole. Comparable sales fell 3.9% year over year in the first quarter of 2025, according to a company earnings report. Net sales fell 4.1% year over year to $3 billion.
Kohl’s latest store layout updates include adding an accessory-focused shopping experience behind the Sephora store-in-stores and moving its juniors section closer to the Sephora shops, according to Timm. Customers seeking junior products often shop Kohl’s Sephora offerings as well.
The company will continue reintroducing the jewelry business to its stores, which was removed from many stores as Sephora shops rolled out. The removal of jewelry made it harder for stores to showcase what made the Kohl’s shopping experience unique, Timm said on a Q4 2024 earnings call in March.
The reintroduction of 200 fine jewelry shops at select Kohl’s stores drove an increase in jewelry sales in the first quarter of 2025, according to Timm. The offering is particularly popular with Kohl’s credit card holders.
Kohl’s turnaround effort puts a premium on bringing back cardholders and other loyal customers. The retailer previously emphasized bringing in new products, but will now explore building a more curated selection that fulfills its customers’ needs.
“We expect to make continued progress throughout the year as we realign our buying disciplines to provide better depth and clarity to our customers, all while tightly managing our inventory receipts down throughout the year,” Timm said. “The goal of all this work is to make shopping at Kohl's a more enjoyable and reliable experience.”
