Kohl’s drops generous offers as it tries to win back customers

Many Americans this year plan to reduce their spending on back-to-school items amid economic pressures, and Kohl’s is adding new offerings to attract these price-conscious consumers.

A recent survey from consulting firm Deloitte found that Americans plan to spend $30.4 billion, or about $557 per student, on back-to-school items this year, which is 6% less than what they spent the year before. 

This decrease in spending comes as 57% said they expect the economy to deteriorate over the next six months, the highest level reported in Deloitte's annual survey since 2020. 

"While many parents are willing to do all they can to help set their children up for success, financial concerns are leading them to sharpen their budgets,” said Natalie Martini, U.S. retail and consumer products sector leader at Deloitte, in a press release.

“Cautious spending behavior exists across income groups, but value-seekers demonstrate that it's not always about the cost — some consumers are willing to spend if they find value in the purchase,” she continued. 

Kohl’s prices thousands of back-to-school items under $25

As Americans continue to cut back, Kohl’s has decided to revamp its back-to-school offerings by pricing thousands of these products under $25, according to a new press release. 

Kohl’s back-to-school assortment this year will include brands such as Levi’s and Nike, as well as its own brands FLX, Jumping Beans, Tek Gear, and SO. 

Jumping Beans tops and bottoms will start at $6.99, while Tek Gear fleece starts at $19.99.

Kohl’s also states that dorm essentials for college students will include brands such as Caro Home, Laura Ashley, The Big One, and the new Peanuts Joe Cool collection.

The retailer is offering kitchen electrics and portable vacuums for $20 and under. Its new Deal Bar will also feature organization products, desk accessories, food storage, and room décor for $10 and under.

Related: Kohl’s scrambles to restore customer loyalty after major loss

To further help cash-strapped customers afford essential goods during the back-to-school season, Kohl’s is now accepting EBT Cash benefits in most stores nationwide. 

In addition to offering lower-priced items, Kohl’s is adding new brands to its back-to-school lineup to attract customers. This includes licensed collections such as Minecraft, NFL, Netflix’s KPop Demon Hunters, and Pokémon. 

Kohl’s also added Brixton to its men’s section, the SO Office Edit collection to juniors, and SO to jewelry and hair accessories. 

“Today's families are looking for more than just a back-to-school checklist — they want confidence that they're making the right choices for their kids and their budgets,” said Kohl’s Chief Marketing Officer Christie Raymond in the press release. 

“By focusing on the brands and styles kids are excited to wear and delivering the quality and value parents expect, we’re making sure families can count on Kohl’s for what they need most,” she continued. 

Bloomberg &sol Getty Images

Kohl’s battles low sales as it struggles to attract customers 

The move from Kohl’s comes after Target and Walmart launched a slate of back-to-school deals last month. Target even made sure that more than 50% of its back-to-school assortment was new this year.

The update from Kohl’s also comes as customers reduce their discretionary spending and the retailer struggles to boost sales in its stores.

In its first-quarter earnings report for 2026, Kohl’s revealed that its comparable sales dipped by roughly 1% year over year, while its operating income dropped by about 23%. 

Foot traffic at Kohl’s stores has also been weak, with a recent Placer.ai report finding that overall customer visits to the retailer’s locations decreased by 4.6% year over year during the quarter. 

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“We are not satisfied with where we are,” said Kohl’s CEO Michael Bender during an earnings call in May. “We need to continue to show up for our customers every day as they continue to put an importance on value and remain under financial pressure.”

To win back customers, Bender said the company will double down on offering a “more curated, balanced assortment” and will focus on reestablishing itself as a “leader in value and quality.”

Kohl’s will also work harder to ensure merchandise is consistently in stock in stores and online, and will leverage artificial intelligence to “modernize and enhance” the customer shopping experience. 

In a CNBC report in June, Blake Anderson, an analyst at Jefferies, said Kohl’s sales are struggling to grow due to increased competition from off-price brands. 

“There always is this concern that can department stores actually grow for any meaningful period of time? There’s lots of competition in terms of off-price specialty brands going direct-to-consumer,” said Anderson.

“The space has really evolved over time, and I think the way that Kohl’s has competed has been significantly tied to value, and so winning that customer based on value is becoming very difficult,” he added.

Sonia Lapinsky, managing director of retail at consulting firm AlixPartners, also said in the report that for Kohl’s to turn around its business, it must offer more value to customers.  

“They have to have a compelling product offering, they have to have the right prices, they have to have the product that consumers want to go into the store and to know that they’re getting the best deal — that’s really what the consumer is looking for, and that’s where they’ve gone other places for,” said Lapinsky.

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