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American department-store retailer combining national brands, private labels, promotional pricing, loyalty rewards, and in-store services.

Last updated August 21, 2026

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Overview

Kohl's is an American department-store retail chain operated by Kohl's Corporation. Its modern department-store business began in 1962, when Maxwell Kohl, who had built a successful southeastern Wisconsin grocery business, opened the first Kohl's department store in Brookfield, Wisconsin. The format was designed to occupy a middle position between traditional higher-end department stores and discount retailers, offering a broad assortment that could include apparel, footwear, accessories, housewares, home furnishings, sporting goods, toys, beauty products, electronics, and seasonal merchandise. The company developed from a regional Wisconsin operation into a national chain through ownership changes, acquisitions, new-store construction, and expansion into major metropolitan markets. British American Tobacco's U.S. retail division, BATUS, acquired a controlling interest in 1972 while members of the Kohl family continued to manage the business. BATUS sold the corporation in 1986 to a management-led investor group, which expanded the department-store base and acquired former MainStreet locations in 1988. Kohl's completed its initial public offering in 1992 and began trading on the New York Stock Exchange under KSS. During the 1990s and 2000s, Kohl's expanded beyond the Midwest into the New York metropolitan area, Texas, California, the Pacific Northwest, and the Southeast. Its store network eventually reached nearly every U.S. state. The chain became particularly associated with a promotional retail model built around sales events, coupons, Kohl's Cash, private-label merchandise, and a store credit card. It also developed a large portfolio of exclusive and proprietary brands, including Apt. 9, Croft & Barrow, Sonoma Goods for Life, Tek Gear, Jumping Beans, and So, while partnering with designers, celebrities, and other consumer brands. Kohl's has supplemented its traditional store model with digital commerce, mobile checkout, loyalty programs, and services intended to increase store traffic. Kohl's Pay integrated the Kohl's Card, Kohl's Cash, rewards, and coupons into a mobile checkout experience. In 2017 the company began accepting selected Amazon returns, expanding the service nationwide in 2019. Kohl's has also tested alternative uses of its store footprint, including leased space for Aldi and Planet Fitness, and added Sephora beauty shops inside selected stores beginning in 2021. A Babies R Us partnership announced in 2024 broadened the company’s baby-products assortment. The company remains a publicly traded U.S. retailer headquartered in Menomonee Falls, Wisconsin. Its business continues to face the structural pressures affecting department stores, including competition from discount chains, specialty retailers, e-commerce platforms, changing consumer demand, and declining traffic in some non-apparel categories. Kohl's has responded through brand partnerships, store-within-a-store concepts, assortment changes, loyalty and payment tools, and efforts to make its locations useful for services such as returns. The company operates primarily through physical stores and its online channel, serving value-conscious families and consumers seeking recognizable brands at promotional prices.

History

Maxwell Kohl entered retail through grocery stores, opening a corner grocery store in Milwaukee in 1927 and later building Kohl's Food Stores into a major southeastern Wisconsin supermarket chain. In 1946 he opened a supermarket that became part of the regional grocery business. The company entered department-store retail in September 1962 with a Brookfield, Wisconsin, location. Kohl positioned the new stores between conventional department stores and discount chains, using a broad, practical assortment that ranged from apparel and household merchandise to sporting goods and automotive-related products. British American Tobacco acquired a controlling interest in Kohl's Corporation in 1972 through its BATUS retail division. At the time, the company included grocery, department-store, drugstore, and liquor operations, and the Kohl family remained involved in management. Herb Kohl left company management in 1979. Under BATUS ownership, the department-store business expanded from Wisconsin into Illinois and Indiana. The grocery division was sold to A&P in 1983 and ultimately disappeared after A&P closed the remaining Kohl's Food Stores in 2003. A management-led investment group purchased Kohl's from BATUS in 1986. The new owners expanded the existing department-store base, added stores during the next two years, and acquired 26 MainStreet locations in 1988. Kohl's went public on May 19, 1992. Starting from a largely Midwestern base, it expanded into the New York metropolitan area after Caldor liquidated, then entered Dallas–Fort Worth and California in 2003, the Pacific Northwest in 2006, and the Southeast during the middle and latter part of the decade. The chain’s growth was accompanied by a distinctive promotional and private-label strategy. Kohl's developed a large collection of in-house and exclusive brands, used coupons and Kohl's Cash to encourage repeat visits, and operated a private-label credit-card program. In 2006 it sold the credit-card division to JPMorgan Chase and later changed processing partners to Capital One. In 2016 it introduced Kohl's Pay, linking payment, loyalty, rewards, coupons, and promotional currency in a mobile checkout system. Kohl's also experimented with environmental initiatives, including solar installations and green-building programs, and with alternative store formats. Off/Aisle, launched as a test in 2015, sold returned or like-new merchandise at reduced prices but was closed in 2019. Leasing space to Aldi and Planet Fitness represented another attempt to use stores as multipurpose destinations. The Amazon returns program, launched in selected stores in 2017 and expanded nationwide in 2019, added a service-oriented reason for customers to visit Kohl's locations. In the 2020s the company pursued partnerships and assortment changes as department-store competition intensified. Sephora shops were introduced inside selected Kohl's stores beginning in 2021, while a 2024 Babies R Us agreement added baby supplies, furniture, and branded products. Kohl's also sought to enlarge its home assortment despite prolonged weakness in home-related sales. Acquisition discussions in 2022 involving several financial, retail, and real-estate groups ended without a sale. Leadership changed several times, including the succession from Michelle Gass to Tom Kingsbury, followed by changes involving Ashley Buchanan and Michael Bender. Kohl's remains an active, publicly listed U.S. department-store retailer.

  • 2024

    Babies R Us assortment agreement

    [1]

    Kohl's announced a deal to add Babies R Us merchandise and related baby brands.

  • 2022

    Acquisition discussions end without transaction

    [1]

    Several prospective buyers considered Kohl's, but the company was not acquired.

  • 2021

    Sephora partnership begins

    [1]

    Kohl's and Sephora began opening Sephora shop-in-shop locations in Kohl's stores.

  • 2019

    Amazon returns expand nationwide

    [1]

    The Amazon returns service was extended across the Kohl's store network.

  • 2017

    Amazon returns pilot begins

    [1]

    Selected stores began accepting Amazon returns.

  • 2016

    Kohl's Pay launched

    [1]

    The company launched a mobile payment and checkout experience integrating its payment and loyalty tools.

  • 2006

    Credit-card division sold

    [1]

    Kohl's sold its credit-card division to JPMorgan Chase.

  • 1992

    Initial public offering

    [1]

    Kohl's completed its IPO and began trading on the NYSE as KSS.

  • 1988

    MainStreet locations acquired

    [1]

    Kohl's acquired 26 former MainStreet stores, accelerating expansion outside Wisconsin.

  • 1986

    Management-led purchase

    [1]

    An investor group led by senior management bought Kohl's from BATUS.

Products and positioning

Promotional, mid-market department-store retailer focused on family shopping, recognizable brands, private labels, loyalty rewards, and convenience services.

  • Department-store retail · 1962

    Kohl's department stores

    The core Kohl's format uses a broad, value-oriented assortment of apparel, footwear, accessories, home goods, beauty, toys, sporting goods, electronics, and seasonal products. Stores generally use a racetrack-style layout in which a circulation aisle loops around the sales floor. The model combines national brands, private labels, exclusive labels, frequent promotions, coupons, and loyalty benefits.

  • Promotional loyalty offering

    Kohl's Cash

    Kohl's Cash is promotional credit issued to customers during qualifying promotional periods and redeemable on later purchases. It is a central part of the retailer's value proposition and encourages customers to return after an initial transaction.

  • Loyalty program

    Kohl's Rewards

    Kohl's Rewards is the retailer's customer-loyalty program, linking qualifying purchases and promotional benefits with the Kohl's shopping ecosystem. It works alongside coupons, Kohl's Cash, the Kohl's Card, and digital shopping tools.

  • Mobile payment · 2016

    Kohl's Pay

    Introduced in 2016, Kohl's Pay combined Kohl's Card payment, Kohl's Cash, rewards, coupons, and a mobile checkout flow. The system was designed to consolidate several parts of the retailer's promotional and payment experience into one digital transaction.

  • Retail service · 2017

    Amazon Returns at Kohl's

    Kohl's stores accept eligible Amazon returns, initially through a selected-store pilot and later nationwide. The service adds a convenience function to the store network and is intended to generate additional customer visits.

  • Beauty shop-in-shop · 2021

    Sephora at Kohl's

    Sephora at Kohl's brings Sephora beauty products and shop-in-shop environments into selected Kohl's locations. The partnership broadened Kohl's beauty offer and replaced part of the retailer's earlier in-house beauty emphasis.

  • Off-price retail format · 2015

    Off/Aisle

    Off/Aisle was a Kohl's test concept selling returned or like-new clothing, home goods, jewelry, and accessories at discounted prices. It used a more restrictive return policy than ordinary Kohl's stores and was ultimately closed in 2019.

  • Private-label merchandise

    Private-label portfolio

    Kohl's private and exclusive labels include Apt. 9, Croft & Barrow, Sonoma Goods for Life, Jumping Beans, So, Tek Gear, and Urban Pipeline, among others. These labels cover apparel, accessories, footwear, and home merchandise and help the retailer differentiate its assortment and support promotional pricing.

Controversies

  • 2025

    Ashley Buchanan dismissal

    Ashley Buchanan was removed as chief executive after less than five months in the role because of reported unethical conduct. Michael Bender became interim chief executive and subsequently chairman and CEO.

Read more

Marketing campaigns

  • 2016Kohl's Pay digital retail campaign

    United States

    Kohl's promoted its integrated mobile checkout experience, connecting payment, coupons, Kohl's Cash, and rewards in a single digital flow.

    Outcome. Added a mobile layer to the retailer's loyalty and payment ecosystem.

  • 2009National brand-strengthening campaign

    United States

    Kohl's hired DeVito/Verdi for national television, online, and social-media work intended to reinforce the Kohl's brand and communicate its broad, promotional department-store proposition.

    Outcome. Expanded national brand communications.

Brand decisions

  • 2022

    Evaluate acquisition proposalsM&A

    Background

    Kohl's faced investor and market pressure amid changing department-store economics and received interest from several potential buyers.

    Action taken

    The company considered proposals or expressions of interest from multiple retail, real-estate, and investment groups but did not complete a sale.

    Aftermath

    Kohl's remained an independent public company.

  • 2021

    Add Sephora shop-in-shopsStrategy

    Background

    Kohl's wanted to refresh its beauty assortment and use partnerships to broaden its in-store offer.

    Action taken

    Kohl's agreed with Sephora to place Sephora shops inside selected Kohl's stores.

    Aftermath

    The partnership became a major component of Kohl's beauty strategy, with additional brand assortment added later.

  • 2017

    Accept Amazon returnsStrategy

    Background

    Kohl's sought to increase the usefulness and traffic potential of its physical stores as e-commerce reshaped retail.

    Action taken

    The company began accepting eligible Amazon returns at selected stores and expanded the service nationwide in 2019.

    Aftermath

    Returns became an additional store service and customer-acquisition touchpoint.

  • 2016

    Launch Kohl's PayProduct launch

    Background

    Kohl's had multiple disconnected payment and promotional instruments, including its card, coupons, Kohl's Cash, and rewards program.

    Action taken

    The retailer introduced Kohl's Pay, a mobile checkout system that integrated these functions through a single digital experience.

    Aftermath

    Kohl's expanded its digital loyalty and payment proposition and also enabled Kohl's Card and rewards integration with Apple Pay.

  • 2006

    Sell the credit-card divisionStrategy

    Background

    Kohl's sought funding to support stock repurchases and store expansion while retaining a private-label credit-card relationship.

    Action taken

    The company sold its credit-card division to JPMorgan Chase.

    Aftermath

    Kohl's later changed its private-label card processing partnership from Chase to Capital One.

    Sale value. $1.5 billion (2006)

Recent events

  • Reported

    Kohl’s announces brand repositioning[3]

    Kohl’s announced that it was reshaping its brand, describing its intended position as a more focused lifestyle concept centered around active and casual lifestyles.

  • Reported

    Kohl's announces a shift to an active and casual lifestyle retailer[4]

    Kohl's said it was evolving from a department store into a more focused retailer centered on active and casual lifestyles, describing the change as a transformation of its business model and brand.

  • Reported

    Kohl’s funds NAMI support-group expansion and joins initiative[5]

    Kohl’s is donating $2 million to the National Alliance on Mental Illness, disbursed over two years, to support virtual support groups and updated programming; the retailer also joined NAMI’s StigmaFree Company initiative.

  • Reported

    Kohl’s announces two-day Wow Deals sale[6]

    Kohl’s announced a two-day Wow Deals event planned for June 21–22, with discounts across product categories and Kohl’s Cash earned on qualifying purchases.

  • Reported

    Kohl's reduces corporate workforce by about 15%[7]

    Kohl's announced that it had reduced its corporate workforce by approximately 15%, citing ongoing COVID-19 pandemic pressures on the business. It said it offered affected employees severance and outplacement services.

  • Reported

    Kohl’s partners with Cream City Print Lounge on T-shirt line[8]

    Kohl’s partnered with Milwaukee-area Black-owned print shop Cream City Print Lounge to create a family T-shirt line supporting racial equality. The shirts were promoted for sale in select stores and online.

  • Reported

    Kohl’s reports first-quarter fiscal 2021 results[9]

    Kohl’s reported first-quarter fiscal 2021 results for the quarter ended May 2, including a $541 million net loss and a 43.5% drop in sales.

  • Reported

    Kohl's opens Twin Falls store[10]

    Kohl's opened its store at the Magic Valley Mall in Twin Falls on Monday, with restricted hours and designated traffic patterns. The opening had been postponed from late March because of the COVID-19 pandemic.

    Weekdays and relative dates follow the original report; their exact calendar dates have not been verified.

  • Reported

    Kohl’s announces Amarillo store reopening[11]

    Kohl’s announced that its Amarillo store and stores across Texas would reopen on May 11, 2020.

  • Reported

    Kohl’s temporarily closes stores nationwide[12]

    Kohl’s announced that it would temporarily close all its stores nationwide starting March 19 at 7 p.m., through at least April 1, while continuing to serve customers online.

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Sources22 sources

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