The post-pandemic years have been brutal for retailers. And things could get a lot worse for many popular chains before they improve.
The fact of the matter is that inflation has been stubbornly elevated these past few years. As a result, a lot of people have been forced to reduce their spending on nonessential purchases to make room for the bills they absolutely have to cover, like rent, electricity, and groceries.
Related: Bath & Body Works makes bold move to target younger customers
That broad decline in spending has forced a number of major retailers into bankruptcy over the past few years. Notable names include:
- Forever 21
- Express
- Party City
- Joann
Recently, accessory giant Claire’s joined that list.
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Even retailers that haven’t been pushed into Chapter 11 have been forced to close stores.
In fact, 5,800 stores have shuttered since the start of 2025, reports CoStar. And the company is projecting that 15,000 retail locations will end up closing by the time 2025 comes to an end.
Kohl’s offers big discounts to win back customers.
Image source: Getty Images
Kohl’s flirts with disaster as sales decline
Kohl’s was once a popular department store chain with an extremely loyal customer base. But over the past few years, the company has struggled.
During its most recent quarter, Kohl’s reported a 4.1% decline in net sales. It also reported a net loss of $15 million.
The reality is that Kohl’s is facing a number of challenges as it, like all of its competitors, grapples with changing consumer habits, the threat of tariffs, and general economic uncertainty.
Related: Costco surprises fans with return of member favorite
But what makes the Kohl’s situation a bit more unique is that the company has been experiencing a notable drop in sales for many years – even before the pandemic rocked retail.
Over the past half-decade, the company’s stock has lost about 50% of its value. And a lot of people have stopped seeing the value in Kohl’s, especially at a time when retailers like Walmart, Target, and Amazon can swoop in and offer even better prices.
The fact that the company’s leadership team has been a revolving door hasn’t helped, either.
Earlier this year, Kohl’s made the decision to close 27 underperforming stores in an attempt to free up room on its balance sheet and focus on improving the customer experience in locations with more foot traffic.
The company also decided to stop accepting Amazon returns at a number of its stores. Whether that ends up being a strategic move for Kohl’s or a poor choice is yet to be determined.
Kohl’s offers huge discounts to win customers back
At a time when Kohl’s is hurting for business, it needs to take big leaps to get customers in the door. One strategy it can use is making customers an offer they can’t refuse in the form of deep discounts on back-to-school items.
Kohl’s shoppers can enjoy hundreds of back-to-school staples for under $10, including shirts, pants, and accessories. The company is also offering great prices on footwear and essentials like backpacks and water bottles (which, as every parent knows, kids tend to lose on a regular basis).
Related: Costco makes bold move into area Target and Kohl’s own
Of course, Kohl’s isn’t the only retailer that’s offering steep discounts in an attempt to boost sales. But one additional move Kohl’s made was expanding its coupon policy to include more popular brands.
It’s common for retailers to exclude desirable brands from promotions, but Kohl’s has changed its tune. Now, customers can enjoy discounts on brands that include:
- Izod
- Cuddl Duds
- Hurley
- Roxy
- Quiksilver
Kohl’s is not only offering big discounts on back-to-school items, but also working to expand its inventory of trendy brands.
Will the company’s strategy work? That’s questionable.
One of Kohl’s biggest challenges is that it struggles with an identity crisis.
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Kohl’s doesn’t have the same hip inventory as Target or low prices as Walmart. And at a time when people can buy just about anything on Amazon and have it show up a few days later, many consumers may be hard-pressed to go to Kohl’s unless there’s a specific reason.
Kohl’s clearly just gave consumers a reason to stop in and stock up for the start of school.Â
But whether a limited-time sale, albeit a fantastic one, is enough to boost revenue on a long-term basis is up in the air.