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Kohl's is losing the department store wars, despite the warm nostalgia of family shopping trips. It used to be a great place to save money on home essentials, but shoppers just don't flock to Kohl's like they did in the past.
There are several factors contributing to the decline of department stores, such as shifting consumer behavior, competition from online retailers, and economic uncertainty for households. During all this, Kohl's has appeared to have chaotic leadership, with a carousel of CEOs.
Kohl's hasn't declared bankruptcy yet, but the decline in public opinion (and spending) could very well push it there. Learn why shoppers just don't love Kohl's anymore.
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Online shopping is king
Sure, the idea of a trip to Kohl's is nice and nostalgic, but actually getting up and going to a place to shop sounds like a lot when a few clicks from home can have anything delivered to your doorstep. Kohl's has tried to cozy up to the online retail giant Amazon by partnering to allow Kohl's returns in Amazon stores, but that doesn't necessarily bring in shoppers.
"Treasure hunting" is no longer fun
Kohl's uses a "racetrack" layout, similar to discount stores, designed to have customers poke through every department looking for deals, but that's time shoppers don't want to spend. Tighter budgets mean less browsing and more focused shopping on needed items.
Complicated coupon strategies
Kohl's is known for having great coupon deals, but shoppers are exhausted from disingenuous pricing. Customers want straightforward pricing that doesn't involve reward points, stacked coupons, and scratch-off prizes. Checking out shouldn't feel like a game show, and that sentiment only intensifies as families tighten their spending budgets to cope with rapidly rising prices on necessities.
Outdated fashion
Kohl's wardrobe options are often outdated and lack life and joy. One Reddit user said about the store's clothing offers, "Every time I walk by the "spring" dresses, I'm hating how dark and drab most of them are."
High prices
Kohl's rose to prominence as a less expensive alternative to places like Macy's and JCPenney, but even with gift cards and coupons, prices are too high now. That might work for shoppers if the craftsmanship were still of high quality, but department stores are offering the same low-quality products that can be found cheaper elsewhere.
Understocked and out of season
Customers like crossover time for seasonal apparel, but Kohl's has been taking it too far. Combined with unusually bare shelves, it makes the store look like it can't afford to keep stock up to date, and unfortunately, the prices aren't dropping on out-of-season options enough to interest shoppers in a good deal for the following year.
Messy stores
If we wanted to see piles of mismatched, unfolded clothes and disorganized shelves… we would all just stay home. Hunting through a store for what you need can be annoying enough when it's clean and orderly, but it's worse when it looks like a small tornado went through the store. This is likely due to Kohl's downsizing and layoffs to improve its bottom line.
Unlabeled pricing
The fastest way to alienate shoppers is to make it difficult to find out how much something costs, and that's exactly what Kohl's digital pricing signs do by way of not working. This means shoppers have to go find a scanner to check the price or download the app, which is even more frustrating for customers who are exhausted by every store having its own app.
Difficult returns
Kohl's makes a big deal of its "great" return policy, claiming it's easy even without a receipt. However, in practice, many customers are finding that the department store doesn't follow its own policies. In fact, it is so prevalent that many have complained to the Better Business Bureau (BBB) about it.
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Online orders don't arrive
Kohl's isn't keeping up with online retail, and customers who order online often complain that their packages never arrive. This is made worse by poor customer service that just tells them to wait longer and never fixes the problem. Along with problems with returns, this is the other most common complaint the BBB receives about the department store.
Bottom line
Kohl's leaves a nostalgic legacy, but it's no longer the savings powerhouse for family shopping it once was. Savvy shoppers looking to avoid wasting money are turning instead to online shopping venues, or stores like Target and Walmart, to meet their household needs.
Tighter budgets also lead more people to compare prices, and that can be difficult with Kohl's pricing structure, which is highly focused on coupons and rewards programs.
More from FinanceBuzz:
- 12 ways to pocket up to $300.
- Are you a homeowner? Get a protection plan on all your appliances.
- 10 little weird hacks Costco shoppers should know.
- Learn how to escape the paycheck-to-paycheck grind.
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