Kohl's Launches 'Deal Bar' to Compete with Off-Price
Kohl's has introduced a new "deal bar" in its stores and online, featuring a rotating selection of items priced under $10. The initiative is a direct competitive response to the value proposition offered by the off-price retail sector. The move targets price-sensitive shoppers and could increase competition for surplus inventory in categories like beauty and self-care.
- The "Deal Bar" is strategically placed at the front of nearly all of Kohl's 1,100+ stores, a high-visibility area designed to encourage impulse buys. The featured products include kids' activities, seasonal items, gifts, and organizational gadgets. - This initiative is one of the first major rollouts under CEO Michael Bender, who took on the permanent role in November 2025. His broader strategy focuses on "Retail Excellence," which includes simplifying value propositions and improving how quickly inventory moves. - While Kohl's core customer base has traditionally been women aged 35-54, this move, along with its Sephora partnership, aims to attract younger, more value-conscious shoppers. In 2024, Gen Z accounted for only about 6% of the retailer's shoppers. - The global off-price retail market was valued at $317.4 billion in 2024 and is projected to grow, with North America representing 42.8% of sales. The beauty category is estimated to be a growing segment of this market, representing between 8% and 10% of the total. - This concept directly mirrors Target's successful front-of-store section known as Bullseye's Playground (or the "Dollar Spot"), which has proven effective at increasing the size of shoppers' baskets. - The launch comes as Kohl's has seen declining sales and foot traffic; net sales dropped by nearly 3% year-over-year in the third quarter of 2025, with in-store traffic down 2.4%. The company is also working to regain relevance after its market share in the Department & Discount Retail Industry fell from 28.81% in Q4 2024 to 26.77% in Q1 2025. - Kohl's is implementing other strategies to attract customers, including opening about 100 smaller-format stores in new markets and leveraging its partnership with Amazon for returns, which brought two million new customers to its stores in the first year. - The move toward more budget-friendly offerings aligns with broader consumer trends, as shoppers have become more "choiceful" with discretionary spending. In the first quarter of 2025, mass-market beauty sales grew by 3%, while the prestige category remained flat at 1% growth.
