Kohl’s is highlighting substantial markdowns and delivery options in its appeal to budget-conscious consumers this holiday period, seeking to stand out amid a challenging economic climate. The retailer is clearly labeling products in its physical locations and online with specific percentage reductions to assist value-focused buyers. It is also introducing tiered pricing at $5, $10, $15, and $20 levels across various categories and providing buy-now-pay-later options via Klarna for both online and in-store purchases. Additionally, Kohl’s is expanding its range of bundled gift sets and leveraging convenience through collaborations with delivery services like DoorDash, Instacart, and Uber Eats.
Clearer signs and value bundles
While Kohl’s has long promoted affordability in its messaging, it is intensifying this focus this holiday season as shoppers handle inflation, rising energy costs, and tariff-influenced price hikes. A recent National Retail Federation survey revealed that over half of holiday shoppers (56%) believe economic conditions will impact their holiday spending this year. Data also shows Kohl’s customers are actively seeking deals. Placer.ai reported that foot traffic during Kohl’s October event was 9.6% higher than the typical same weekday average.
Kohl’s knows it has “a responsibility to cut through with value,” Arianne Parisi, Kohl’s chief customer officer, told members of the media on Oct. 21. In today’s macroeconomic environment, Kohl’s is “thinking about how pinched consumers are [at] this time,” she added. However, executives admitted the company has not always clearly communicated this message, prompting holiday shoppers to notice more visible discount indicators online and in stores.
“The data that we’ve seen is that we haven’t always been as clear about our prices and as clear about value,” said Ryan Waymire, Kohl’s chief merchandising officer. Signs like “50% off” make it “easy to do that calculation in your head” and stick to a $20 budget, he said.
Partnerships and product selection
This year, Kohl’s will feature over 400 gift collections, including items from brands like Laneige via its Sephora partnership. Forty of these collections are exclusive to Sephora at Kohl’s locations. The assortment will also include Advent calendars across multiple categories, including toys.
Bundles are proving key to this messaging, as well. Similar to its competitor Target, Kohl’s is emphasizing both its private labels and national brands this holiday season. Shoppers can purchase items from Sonoma Goods for Life and LC Lauren Conrad, as well as Nike, Under Armour, and Adidas. More than half of Kohl’s gifting section is newly introduced this year, and customers can find popular toy brands like NeeDoh and Lego. “We definitely see squishies as a big opportunity,” Waymire noted.
While Kohl’s is promoting its AI-powered shopping assistant, most product discovery still occurs via traditional search. The company is ensuring customers can purchase these items both online and in stores by enhancing inventory systems to maintain product availability. During the holidays, over 50% of Kohl’s digital orders are “touched by a store,” including through fulfillment services, Parisi said. Kohl’s serves more than 60 million active customers, and 80% of Americans reside within 15 miles of a Kohl’s location, she added.
Delivery options and a turnaround strategy
Delivery remains a priority for Kohl’s this November and December, as the company is now live with Instacart and DoorDash and plans to launch its partnership with Uber Eats next month. Approximately 80% of these delivery partners’ same-day customers are new to Kohl’s, Parisi said. This marks the first holiday season where Kohl’s customers can use Klarna’s buy-now-pay-later options both online and in physical stores.
Across all sales channels, Kohl’s is promoting its holiday selections through a marketing initiative called “The North Kohl’s.” The campaign highlights themes such as coziness, style, and home, featuring actress Ellie Kemper as “Kohl’s Mom.”
Kohl’s holiday initiatives align with its broader turnaround strategy under CEO Michael Bender, who assumed leadership in 2025. Once a dominant department store, Kohl’s has seen its stock value plummet nearly 70% over five years. To drive growth, the company is investing in categories like fragrance, expanding private-label offerings, and scaling creator partnerships. In August, Kohl’s posted a quarterly net sales decline of 0.9% compared to the previous year, yet it raised its full-year 2026 financial outlook.
