How Kohl's lost its way - and is trying to become relevant again

Key Points:

• Kohl's stock has lost nearly 70% of its value over the past five years due to weak sales and shifting strategies that alienated its core middle-income customers, leading to declining foot traffic and market share losses to competitors like Walmart and T.J. Maxx.
• Since CEO Michael Bender took over in late 2025, Kohl's has refocused on its core value proposition of proprietary brands, coupons, and reliable product availability, resulting in its best comparable sales growth in four years and a 130% stock increase over the past year.
• The retailer is also targeting younger consumers through Sephora shop-in-shops, aiming to drive new traffic and future growth despite recent underperformance in this segment.
• Analysts acknowledge Kohl's strategic improvements but remain cautious, citing ongoing challenges in apparel and footwear, competitive pressures, and the need for a compelling value proposition to win back cost-conscious shoppers.
• Kohl's CEO emphasizes that while early signs of recovery are positive, the company is still in the early stages of its turnaround and focused on sustained growth and clarity in its strategic direction.