As a seasoned retail industry expert and discerning shopper, I‘ve witnessed firsthand the intense competition that characterizes the modern retail landscape. Kohl‘s, with its 1,162 stores and $19.97 billion in 2020 revenue, is a formidable player in this arena. However, to maintain its position, Kohl‘s must contend with a diverse array of rivals, each bringing unique strengths and strategies to the battle for consumer loyalty.
In this comprehensive guide, we‘ll take a deep dive into Kohl‘s 15 most significant competitors, analyzing their value propositions, financial performance, and potential threat level. By the end, you‘ll have a clear understanding of the competitive forces shaping Kohl‘s future and the wider retail sector.
The Department Store Heavyweights
Kohl‘s most direct competitors are fellow department store chains, which aim to be one-stop shops for apparel, accessories, home goods, and more. Here‘s how Kohl‘s stacks up against the big names in this category:
1. Macy‘s
With 789 stores and $25.33 billion in 2020 revenue, Macy‘s is Kohl‘s closest rival in terms of scale and product mix. Macy‘s slightly upscale positioning and strong private labels like INC and Alfani give it an edge with fashion-forward shoppers. However, Kohl‘s has fought back with its own exclusive brands like LC Lauren Conrad and Sonoma Goods for Life.
| Metric | Macy‘s | Kohl‘s |
|---|---|---|
| Revenue (2020) | $25.33B | $19.97B |
| Store Count | 789 | 1,162 |
| Loyalty Program | Star Rewards | Kohl‘s Rewards |
| Average Product Price | $$$ | $$ |
2. Nordstrom
Operating 100 full-line stores and 248 Nordstrom Rack outlets, Nordstrom is the premier luxury department store chain. With $15.52 billion in 2020 revenue, Nordstrom‘s impact on Kohl‘s is notable but indirect. Nordstrom‘s legendary customer service and upscale ambiance attract a higher-income clientele, while Kohl‘s focuses on delivering value to middle-market consumers.
3. JCPenney
Once a dominant force in the mid-tier department store space, JCPenney has struggled in recent years, filing for bankruptcy in 2020. Still, with 600 locations and $4.15 billion in 2020 revenue, JCPenney remains a significant competitor for Kohl‘s. Both chains target budget-conscious families with frequent promotions and affordable private labels.
4. Dillard‘s
With 280 stores concentrated in the South and Midwest, Dillard‘s is a regional powerhouse. The chain‘s $6.34 billion in 2020 revenue reflects its focus on premium brands and personalized service. While Dillard‘s and Kohl‘s overlap in some categories, Dillard‘s higher price point and limited geographic footprint make it a less direct threat.
The Specialty Store Insurgents
In addition to traditional department stores, Kohl‘s faces competition from specialty retailers that focus on specific product categories. These rivals often win by offering deeper assortments or lower prices in their areas of expertise.
5. Gap Inc.
With its flagship Gap brand and spinoff chains like Old Navy and Banana Republic, Gap Inc. is a formidable competitor in the apparel space. Gap‘s $13.8 billion in 2020 net sales reflects its massive global reach, with over 3,100 stores worldwide. While Gap‘s styles skew younger and trendier than Kohl‘s, the two chains compete heavily for basics like denim, tees, and khakis.
6. Ross Stores
As the largest off-price apparel and home fashion chain in the US, Ross poses a significant threat to Kohl‘s. With 1,629 locations and $12.5 billion in 2020 revenue, Ross‘s low prices and treasure hunt shopping experience have proven resilient amid retail disruption. Though Ross stores can be hit-or-miss, savvy shoppers flock there for steep discounts on name brands.
7. TJX Companies
The parent company of TJ Maxx, Marshalls, and HomeGoods, TJX Companies is another off-price giant keeping Kohl‘s on its toes. With over 4,500 stores worldwide and $41.72 billion in 2020 revenue, TJX‘s vast scale enables it to secure incredible deals from top brands. Like Ross, TJ Maxx and Marshalls stores are known for their frequently changing assortments and bargain prices.
| Retailer | Store Banners | 2020 Revenue | Stores (US) |
|---|---|---|---|
| Gap Inc. | Gap, Old Navy, Banana Republic, Athleta | $13.8B | 2,785 |
| Ross Stores | Ross Dress for Less, dd‘s DISCOUNTS | $12.5B | 1,629 |
| TJX Companies | TJ Maxx, Marshalls, HomeGoods, Sierra | $41.72B | 2,679 |
Sources: Company financial reports and store locators
The Home Goods Specialists
Kohl‘s has significantly expanded its home department in recent years, putting it in direct competition with chains that specialize in furniture, decor, and housewares.
8. Bed Bath & Beyond
With 758 stores across the US, Bed Bath & Beyond is a major player in the home goods space. The chain‘s $11.23 billion in 2020 revenue reflects its broad assortment of bedding, bath, kitchen, and storage products. While BB&B‘s prices are often higher than Kohl‘s, its 20% off coupons and deep clearance sales keep customers coming back.
9. Wayfair
Though it lacks physical stores, online retailer Wayfair has quickly become a go-to destination for furniture and home decor. With $14.15 billion in 2020 revenue, Wayfair‘s vast selection and competitive prices pose a growing threat to Kohl‘s home business. As more consumers shift to buying big-ticket items online, Kohl‘s will need to step up its ecommerce game to keep pace.
The Ecommerce Behemoths
Of course, no discussion of retail competition is complete without mentioning the elephant in the room: Amazon. As the undisputed leader in online shopping, Amazon‘s impact on Kohl‘s and other traditional retailers cannot be overstated.
10. Amazon
Boasting $386.06 billion in 2020 revenue, Amazon‘s scale and influence are unrivaled. From apparel and accessories to home goods and electronics, Amazon‘s vast marketplace competes with Kohl‘s in nearly every category. To make matters worse, Amazon Prime‘s free shipping and streamlined checkout have conditioned shoppers to expect maximum convenience.
Kohl‘s has responded by partnering with Amazon on returns, hoping to drive foot traffic to its stores. However, the long-term viability of this strategy remains to be seen. As Amazon continues to gobble up market share, Kohl‘s will need to find new ways to differentiate its offerings and shopping experience.
| Company | 2020 Revenue | YoY Growth | Product Categories |
|---|---|---|---|
| Amazon | $386.06B | 37.6% | Everything |
| Kohl‘s | $19.97B | -20.4% | Apparel, Home, Beauty, Accessories |
Sources: Amazon and Kohl‘s 2020 annual reports
The Up-and-Comers
In addition to established competitors, Kohl‘s must keep an eye on emerging players shaking up the retail scene. These digitally-native brands and innovative business models could be the dark horses of the future.
11. Stitch Fix
With its data-driven, personalized styling service, Stitch Fix is reinventing the way consumers discover and buy clothing. The company‘s $1.71 billion in 2020 revenue reflects the growing appeal of its curated shopping experience. As Stitch Fix expands into new categories and refines its algorithms, it could pose a serious threat to Kohl‘s apparel business.
12. ThredUp
Online consignment store ThredUp is riding the wave of resale fashion, which is expected to grow 11x faster than the broader retail clothing sector by 2025. With its unique selection of secondhand gems and sustainable ethos, ThredUp appeals to eco-conscious millennials and Gen Zers. As these generations gain purchasing power, Kohl‘s will need to respond to their evolving values and shopping habits.
13. Allbirds
Direct-to-consumer brand Allbirds has quickly made a name for itself with its ultra-comfortable, sustainably-made shoes. By controlling every aspect of the product and customer experience, Allbirds has built a cult-like following and $219 million in 2020 revenue. As Allbirds expands into apparel, it could chip away at Kohl‘s market share among younger, environmentally-minded shoppers.
The Wildcards
Finally, Kohl‘s faces competition from a handful of players that defy traditional categorization. These retailers have unique business models and value propositions that could disrupt Kohl‘s growth trajectory.
14. Target
Though often lumped in with discount chains like Walmart, Target has successfully positioned itself as a chic, affordable alternative to department stores. With its on-trend collaborations, stylish private labels, and convenient one-stop shopping, Target poses a serious threat to Kohl‘s. In 2020, Target‘s revenue soared to $93.56 billion, buoyed by its strong ecommerce capabilities and safe in-store experience during the pandemic.
15. Costco
As a members-only wholesale club, Costco‘s business model differs significantly from Kohl‘s. However, with its rock-bottom prices on apparel, home goods, and more, Costco still competes for a share of consumers‘ wallets. In 2020, Costco‘s revenue hit $166.76 billion, driven by strong renewal rates and pandemic stockpiling. As consumers prioritize value in the aftermath of COVID-19, Costco‘s unbeatable deals could put pressure on Kohl‘s.
| Retailer | 2020 Revenue | Membership Model | Key Differentiators |
|---|---|---|---|
| Target | $93.56B | No | Style, convenience, value |
| Costco | $166.76B | Yes | Bulk savings, treasure hunt |
Sources: Target and Costco 2020 annual reports
Staying Ahead of the Pack
As this analysis reveals, Kohl‘s faces a daunting array of competitors, each with its own strengths and strategies. To thrive in this hyper-competitive environment, Kohl‘s must leverage its unique assets while adapting to changing consumer preferences.
Kohl‘s Rewards program, which rolled out nationwide in 2020, is a key differentiator. By offering 5% Kohl‘s Cash on every purchase, the program incentivizes loyalty and repeat visits. Kohl‘s should double down on personalized rewards and exclusive perks to keep shoppers engaged.
At the same time, Kohl‘s must continue to curate an exciting, value-driven assortment that sets it apart from rivals. Exclusive partnerships with popular brands like Nike, Under Armour, and Sephora have proven successful in driving traffic and buzz. Kohl‘s should seek out more of these collaborations, particularly with up-and-coming designers and influencers.
On the digital front, Kohl‘s must keep pace with rising ecommerce expectations. That means investing in faster shipping, easier returns, and a more personalized online shopping experience. Kohl‘s mobile app, which includes features like store maps and personalized deals, is a step in the right direction. However, Kohl‘s will need to keep innovating to match the convenience of Amazon and other digital natives.
Finally, Kohl‘s should lean into its positioning as a community-oriented, family-friendly retailer. By hosting events, classes, and fundraisers in its stores, Kohl‘s can foster a sense of connection and goodwill among local shoppers. In a world of faceless ecommerce giants, this human touch could be a crucial differentiator.
Ultimately, as a shopper, I appreciate having so many options at my fingertips. Whether I‘m hunting for designer deals at TJ Maxx, stocking up on home essentials at Target, or splurging on a Nordstrom indulgence, I know I can find what I‘m looking for at a price that fits my budget. Kohl‘s, with its unique mix of value and quality, remains a top contender in my shopping rotation. But to earn my long-term loyalty, it will need to keep innovating and adapting to my evolving needs and desires.
One thing is certain: the retail battle royale shows no signs of slowing down. As competitors old and new jockey for position, consumers stand to benefit from more choices, better deals, and elevated shopping experiences. So grab your wallet and join the fray – the future of retail is unfolding before our eyes.
