The Pricing Strategy of Kohl's

Recently I’ve been diving into the pricing strategies of some of my favorite retailers.

One of them happens to be Kohl’s, so I wanted to share some of my findings with you all. But before we get into the nitty-gritty, I want to give you a little background on the company.

Kohl’s is an American department store chain with over 1,100 stores in 49 states. They offer a wide range of products from clothing and footwear to home goods and electronics.

They have a strong reputation for being a value-oriented retailer, but how do they actually achieve that?

Let’s take a closer look.

Clearance Sales

One way Kohl’s achieves their reputation for being a value-oriented retailer is through its clearance sales.

These sales happen throughout the year, and they offer deep discounts on a wide range of products. In fact, Kohl’s clearance sales can offer discounts of up to 80% off on certain items. That’s a pretty significant saving, and it’s definitely something worth keeping an eye out for if you’re a bargain hunter.

But it’s not just about the discounts, Kohl’s also does a great job of rotating their clearance merchandise, so even if you’re not in the market for something specific, you might still find something that catches your eye.

Rewards Program

Another way Kohl’s offers value to its customers is through its rewards program.

The program is called Kohl’s Rewards, and it’s free to join. Basically, for every dollar you spend at Kohl’s, you earn one point. Once you’ve accumulated 100 points, you can redeem them for a $5 reward. But that’s not all, as a member you also get exclusive discounts and offers.

For example, during the holiday season, Kohl’s rewards program members get exclusive access to Black Friday deals before they’re available to the general public. This definitely helps to give members an edge when it comes to getting their hands on the best deals.

Furthermore, the rewards program is not only limited to in-store purchases but also online, which makes it really easy to accumulate points and rewards.

It’s worth mentioning that these are just a couple of the ways Kohl’s offers value to its customers, but it’s pretty clear that the company puts a lot of effort into making sure its customers are getting a good deal.

Exclusive Brands

Another way Kohl’s stands out from the competition is through their exclusive brands. These are brands that you can only find at Kohl’s, and they offer a wide range of products at great value.

Some of the most popular exclusive brands at Kohl’s include Simply Vera Vera Wang, Rock & Republic, and Fila Sport. These brands offer a wide range of products, from clothing and footwear to home goods and electronics.

Additionally, these exclusive brands often have limited-time promotions and discounts, which makes them even more appealing to customers looking for a great deal.

For instance, one of the exclusive brands, Simply Vera Vera Wang, has a reputation for trendy and fashionable clothing, but also affordable prices. According to a study by Retail Insights, Simply Vera Vera Wang is one of the most popular exclusive brands among Kohl’s customers.

The brand also regularly offers discounts, such as buy one get one 50% off, which makes it even more appealing to customers.

Partnership with Other Retailers

Kohl’s also offers value to its customers through partnerships with other retailers. One of the most notable partnerships is with Amazon, where customers can return Amazon purchases at select Kohl’s stores. This not only makes it more convenient for customers to return items, but it also drives foot traffic to Kohl’s stores.

Another partnership that Kohl’s has is with Aldi, the German discount supermarket chain. In certain locations, Aldi opened up its store inside Kohl’s. This partnership allows customers to do their grocery shopping while also browsing for other items at Kohl’s.

According to a press release by Kohl’s, this partnership has been successful in terms of increasing store traffic and sales.

In addition to these partnerships, Kohl’s also partners with various other retailers such as Old Navy, Nike (Nike also has an interesting pricing strategy), and Under Armour to offer a wider variety of products for customers.

These partnerships allow Kohl’s to offer a wider range of products and increase customer foot traffic in their stores.

Price Matching Policy

Yet another way Kohl’s offers value to its customers is through its price-matching policy. Kohl’s applies dynamic pricing and will match the price of a competitor’s local advertised price or the price found on a competitor’s website.

This policy applies to both in-store and online purchases, which means customers can always feel confident that they’re getting the best deal possible.

Additionally, Kohl’s also offers a price adjustment policy, which means that if an item goes on sale within 14 days of purchase, the customer can get a price adjustment. This policy applies to both regular and clearance items, making it even more likely that customers will always get the best deal possible.

We found that Kohl’s has the most generous price-matching policy among major retailers, which is definitely a plus for customers who are looking for a great deal.

In summary, Kohl’s price matching and price adjustment policies make it easy for customers to feel confident that they’re getting the best deal possible, which is a big part of what makes Kohl’s a value-oriented retailer.

Credit Card

Kohl’s also offers value to its customers through its credit card program. The Kohl’s Charge Card provides customers with additional discounts and benefits, such as a 30% off coupon for use on their first purchase, and special discounts and offers throughout the year.

Furthermore, cardholders also earn Kohl’s Cash for every purchase made with the card, which can be used on future purchases.

Additionally, cardholders also receive 12 exclusive discounts per year, which is a great way for customers to save even more money. These discounts are typically around 15-20% off, which can add up to significant savings over time.

Overall, Kohl’s credit card program is one of the most popular among department store credit cards. This is likely due to the additional discounts and benefits offered by the card.

Community Involvement

Another way Kohl’s offers value to its customers is through its community involvement. Kohl’s is actively involved in various community initiatives, such as its Kohl’s Cares program, which raises funds for children’s health and education initiatives through the sale of special merchandise.

Additionally, the company also participates in various volunteer initiatives and events, such as the annual Kohl’s Volunteer Day, where associates take the day off to volunteer at various non-profit organizations.

Furthermore, Kohl’s also partners with organizations such as the American Red Cross, Habitat for Humanity, and Junior Achievement to support and give back to their local communities.

According to a press release by Kohl’s, in 2020 alone, the company donated over $30 million to support various community initiatives and organizations. This shows the company’s dedication to being an active member of the communities where it operates.

Online Shopping Experience

Kohl’s offers a great online shopping experience for its customers.

The company’s website is user-friendly and easy to navigate, making it easy for customers to find what they’re looking for. Additionally, Kohl’s offers a wide range of products online, including exclusive brands and clearance items, making it easy for customers to find great deals no matter where they are.

The company also offers free shipping on orders over $75 and free in-store pickup for online orders, providing customers with convenient and flexible options for receiving their purchases.

Furthermore, Kohl’s also offers a mobile app, which makes it easy for customers to shop and manage their rewards program, along with various other features such as store locator, barcode scanner and digital coupons.

Kohl’s Pricing Strategy in a Nutshell

A pricing strategy is important for any business.

And Kohl’s pricing strategy combines various methods such as clearance sales, reward programs, exclusive brands, partnerships, credit card programs, community involvement, and online shopping experience.

One of the key components of Kohl’s pricing strategy is its clearance sales, which can offer discounts of up to 80% off on certain items. This allows customers to find great deals on a wide range of products throughout the year.

Additionally, the company’s rewards program, exclusive brands, partnerships, credit card program, community involvement and online shopping experience all contribute to providing customers with additional discounts and benefits.

Furthermore, Kohl’s also employs a dynamic pricing strategy, which means that the prices of products are subject to change based on demand and supply. This allows the company to adjust prices in real-time, making sure that customers are getting the best deal possible.

In conclusion, Kohl’s pricing strategy is based on a combination of various methods, which allows the company to offer value-oriented products to its customers while still maintaining a strong reputation as a value-oriented retailer.


About the Author
Hi there, I'm James, founder of Melbado. I have over 20 years of experience as a leader and entrepreneur. Recently, I turned to leadership coaching and writing to pass on my knowledge to the next generation. If you have any questions or comments, please contact me via our contact page.

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