Kohl's Bundle
Who shops at Kohl's?
Understanding customer demographics and target market is paramount for any company's business strategy and market success, especially in the evolving retail landscape. For Kohl's, a leading omnichannel retailer, this understanding is critical to navigate shifts in consumer behavior and maintain its competitive edge.
Kohl's has grown into a nationwide chain, operating approximately 1,153 stores across 49 states as of 2025, alongside a robust e-commerce platform. Despite its established presence, the company faces challenges, with net sales decreasing by 4.1% in Q1 2025 compared to the prior year.
What is Customer Demographics and Target Market of Kohl's Company?
Who Are Kohl's ’s Main Customers?
Kohl's primarily serves consumers in a business-to-consumer (B2C) model, with a strong emphasis on middle-class individuals, particularly women aged 25-54, often residing in suburban areas. The company's customer base is predominantly located within a 15-mile radius of its stores, reflecting its widespread presence across the United States.
Primary Customer Profile
As of 2025, approximately 70% of Kohl's shoppers are female, with males making up the remaining 30%. The company's core demographic includes Gen X and Baby Boomers, with Baby Boomers representing four out of ten American shoppers and Gen X customers accounting for 32% of the base.
Demographic Reach
Kohl's boasts over 60 million customers in the United States as of 2025. A significant majority, around 80%, live within 15 miles of a Kohl's store, indicating a strong reliance on its physical retail footprint.
Evolving Target Market
While historically strong with older demographics, Kohl's is actively seeking to attract younger consumers, including Millennials and Gen Z, recognizing their increasing purchasing power and influence on retail trends.
Attracting Younger Consumers
Despite efforts, attracting Gen Z remains a challenge, with only about 6% of Kohl's shoppers belonging to this demographic as of May 2025. The company is adapting its strategies to appeal to Millennials, who are showing a greater inclination towards homeownership and suburban living.
Understanding Kohl's Customer Base
The Kohl's customer profile is characterized by a strong female majority and a significant presence of Gen X and Baby Boomers. The company's marketing strategy aims to retain its loyal older customer base while simultaneously engaging younger demographics like Millennials and Gen Z.
- Primary customer segment: Middle-aged women (25-54)
- Geographic concentration: Suburban areas
- Dominant age groups: Gen X and Baby Boomers
- Gender split: 70% female, 30% male
- Challenge: Increasing appeal to Gen Z
- Understanding Kohl's customer base and purchasing habits is key to its ongoing success.
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What Do Kohl's ’s Customers Want?
Kohl's customers are primarily driven by the need for value and affordability, with a significant portion actively seeking discounts and cost-saving opportunities. This consumer behavior is particularly pronounced in the current economic climate, influencing their purchasing decisions across various product categories.
Value and Affordability
Kohl's shoppers prioritize getting the most for their money. Data from May 2025 shows that 31.2% of Kohl's customers are using coupons more frequently, and 28.8% are reducing their spending on apparel.
Coupon Utilization
The increased use of coupons by Kohl's customers is a clear indicator of their price sensitivity. This trend surpasses national averages, highlighting a strong preference for promotional offers.
Apparel Spending Habits
A notable percentage of Kohl's customers are spending less on apparel, suggesting a shift in discretionary spending or a search for more budget-friendly clothing options.
Expanded Coupon Eligibility
In response to customer needs, the company has expanded its coupon-eligible brands. This move aims to attract and retain customers by offering discounts on a wider range of popular products.
Omnichannel Convenience
Customers seek a convenient and integrated shopping experience across all channels. Kohl's is investing in its physical stores, website, and mobile app to meet this demand.
Channel Integration
Initiatives like 'buy online, pick up in store' and 'self-serve buy online, pick up in all stores' by the end of 2022 demonstrate a commitment to seamless shopping. Customers who engage with multiple channels are more valuable.
The company also focuses on curating a balanced assortment of merchandise, including national brands, private labels, and exclusive items, particularly in growth areas like activewear, home goods, and beauty. The strategic partnership with Sephora, projected to be worth $2 billion by 2025, exemplifies this approach to tailoring offerings and driving customer traffic by meeting specific preferences.
Product Assortment Strategy
Kohl's aims to provide a diverse and appealing product mix to cater to varied customer tastes. This strategy is crucial for maintaining relevance and attracting a broad customer base.
- National brands
- Private labels
- Exclusive merchandise
- Activewear
- Home goods
- Beauty products
Strategic Partnerships
Collaborations like the one with Sephora are key to enhancing the customer experience and driving sales in high-demand categories. This partnership is a significant driver of traffic and revenue.
- Partnership with Sephora
- Projected value of $2 billion by 2025
- Focus on beauty category
- Driving customer traffic
- Enhancing shopping experience
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Where does Kohl's operate?
Kohl's operates a substantial physical retail network across the United States, with approximately 1,153 stores spanning 49 states, excluding Hawaii. This extensive presence is strategically positioned in areas with high population density and significant suburban reach, reflecting a focus on mid-income consumer bases.
Nationwide Store Footprint
Kohl's maintains a significant geographical market presence across the United States, operating approximately 1,153 stores in 49 states. The company's physical footprint is strategically concentrated in populous states with broad suburban reach, indicating a focus on regions with dense mid-income populations.
Suburban Market Dominance
Kohl's clearly favors suburban markets, with nearly 70% of its stores located outside major urban cores. This aligns with its middle-income family target demographic, emphasizing accessibility for its core customer base.
Strategic Store Geography
As of 2025, Kohl's leads the market in store-based presence with a commanding 43.6% share. This highlights a strategy of prioritizing strategic store geography over sheer volume, optimizing its physical retail approach.
Store Network Optimization
While closing underperforming locations, Kohl's plans to open approximately 100 new, smaller-format stores over the next four years. This expansion targets markets where it currently lacks a physical presence, demonstrating a cautious yet growth-oriented approach to its physical retail strategy.
The company's commitment to localizing offerings is evident through strategic partnerships, such as the Sephora at Kohl's shop-in-shops. These are planned for over 850 stores and are projected to surpass $2 billion in sales by 2025, indicating a successful integration of popular brands to enhance the customer experience and align with the Growth Strategy of Kohl's.
Market Penetration
Kohl's extensive store network across 49 states signifies a deep penetration into the U.S. retail landscape, particularly in suburban areas.
Targeted Expansion
The planned opening of smaller-format stores in new markets indicates a strategic effort to reach underserved customer segments and expand the Kohl's customer profile.
Partnership Integration
The integration of brands like Sephora into over 850 stores demonstrates a strategy to enhance the appeal of Kohl's customer base and drive sales through curated experiences.
Sales Projections
The projected sales of over $2 billion from Sephora at Kohl's by 2025 underscore the success of strategic brand partnerships in influencing Kohl's consumer behavior.
Geographic Focus
The concentration of stores in populous states with suburban reach highlights Kohl's customer segmentation, targeting areas with a high density of its primary customer age range.
E-commerce Fulfillment
The closure of the San Bernardino E-commerce Fulfillment Center in May 2025 suggests a recalibration of its online operations strategy, potentially impacting its target market for online shoppers.
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How Does Kohl's Win & Keep Customers?
The company employs a robust strategy for customer acquisition and retention, heavily relying on its loyalty programs and value-driven promotions. These initiatives are designed to foster repeat business and attract new shoppers by offering tangible benefits and personalized experiences. The focus remains on enhancing customer engagement through various channels.
Loyalty Program Benefits
The Kohl's Rewards program is central to customer retention, offering members 5% back on all purchases. Cardholders receive an elevated 7.5% rewards rate, with additional perks like exclusive savings and anniversary gifts, encouraging consistent engagement and spending.
Marketing Channel Integration
The company utilizes a blend of digital, traditional, and social media marketing. Efforts are concentrated on improving the website and mobile app to boost online sales and provide a seamless customer experience, including easy redemption of rewards.
Strategic Partnerships for Acquisition
Key partnerships, such as Sephora at Kohl's and the introduction of Babies R Us shop-in-shops, are vital for attracting new customer segments and driving store traffic. These collaborations aim to broaden the appeal and offer unique shopping destinations.
Adapting to Consumer Behavior
In response to market challenges, including a 4.1% decrease in net sales in Q1 2025, the company is reintroducing broader promotional offers. This move aims to address customer financial pressures and win back shoppers by making discounts more accessible.
Kohl's Rewards Program
Members earn 5% back, with Kohl's Card shoppers earning 7.5% rewards. This tiered system incentivizes loyalty and frequent purchases, contributing significantly to customer retention.
Digital Engagement
Enhancements to the website and mobile app are crucial for online sales and customer convenience. The app facilitates browsing, reward redemption, and deal management for both online and in-store use.
Promotional Strategy Adjustment
The company is increasing the availability of coupons and promotions to counter declining sales and store visits, which saw a 2.7% dip year-over-year in Q1 2025. This strategy aims to attract price-sensitive consumers.
Customer Segmentation
By offering tiered rewards and personalized discounts, the company effectively segments its customer base. This approach caters to different spending habits and loyalty levels, enhancing the overall customer profile.
Attracting New Demographics
Strategic brand partnerships are key to attracting new customer segments and expanding the Kohl's target market. These collaborations aim to bring in shoppers interested in specific categories or brands.
Understanding Consumer Behavior
Analyzing consumer behavior, particularly in response to economic conditions, informs marketing adjustments. The company's efforts to understand Kohl's customer base and purchasing habits are reflected in its revised promotional strategies.
Kohl's Marketing Strategy Evolution
The company's marketing strategy is dynamic, adapting to market shifts and consumer needs. Key elements include:
- Leveraging loyalty programs to drive repeat purchases and increase customer lifetime value.
- Enhancing digital platforms to capture online sales and provide a seamless omnichannel experience.
- Utilizing strategic partnerships to attract new customer segments and broaden the Kohl's target market.
- Adjusting promotional offers to remain competitive and address consumer financial stress, a critical aspect of understanding Kohl's customer demographics.
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