Kohl’s has finally walked back one of its most unpopular changes by reversing a five-year coupon exclusion policy.
The company confirmed the shift during its latest earnings call, admitting that cutting back on coupon-eligible products and shrinking key departments drove away core customers. With inflation rising and spending tightening for middle and low-income shoppers, Kohl’s is trying to bring value back to its stores.
The retailer is now working hard to recover the trust and business of its loyal Kohl’s Card shoppers who were hit hardest by the previous decisions.
Here’s a complete breakdown of what changed and why.
What Kohl’s Is Changing
- Coupon exclusions have been reduced to allow more products and brands to qualify for discounts
- Previously downsized departments like in-store jewelry and proprietary brands are seeing renewed investment
- The decision to exit the petites section is being reconsidered
- New brands were added to the coupon program as of April 28
- Loyalty programs are being prioritized again to drive Kohl’s Card performance
Why Customers Were Upset
Kohl’s CFO admitted several policy decisions were poorly received and hurt business, especially among the core Kohl’s Card customer base. These included limiting discounts, removing certain departments, and reducing in-store inventory.
Here’s a simple breakdown of how it all added up:
| Kohl’s Decision | Customer Reaction | Business Impact |
|---|---|---|
| Increased coupon exclusions | Shoppers felt they were losing value | Drop in Kohl’s Card sales |
| Downsized in-store jewelry | Reduced product selection | Negative shopper sentiment |
| Exited petites department | Limited options for petite customers | Decreased loyalty from key demographics |
| Less investment in proprietary brands | Fewer exclusive deals | Weaker brand identity |
| Closed underperforming stores | Reduced convenience | Smaller in-store footprint in 15 states |
How Kohl’s Plans to Recover
While reversing the coupon exclusions is a big move, it’s not the only strategy Kohl’s is using to turn things around. The company is betting big on beauty, and the results are already showing strong momentum.
- Sephora at Kohl’s has now expanded to over 1,100 stores nationwide
- The beauty category saw a six percent year-over-year sales increase in the first quarter
- By the end of the year, all Kohl’s locations will include a Sephora shop
- Sephora now represents nearly a two billion dollar business segment for Kohl’s
Other Key Updates
- Kohl’s recently closed 27 underperforming stores across 15 states as part of a cost-saving plan
- The popular in-store returns policy was canceled after eight years
- The former CEO was removed after internal concerns about undisclosed conflicts of interest with vendors
With the economy forcing many consumers to cut back on spending, Kohl’s is finally responding to the pressure. The return of broad coupon access, increased promotions, and reinvestment in key departments signal a new direction for the brand. For many longtime shoppers, this change is long overdue.
