Kohl’s Corp. has boosted its Kohl’s Rewards benefit by 50 percent in a move to lift sales and traffic.
The retailer said members of its Rewards program using the Kohl’s store card on purchases will now earn Kohl’s Rewards at a 7.5 percent rate. Previously, Kohl’s Rewards members would earn 5 percent, regardless of payment method. Kohl’s Rewards members also receive personalized deals, perks and a birthday gift.
Kohl’s had been piloting the 7.5 percent Rewards offering in more than 100 stores in eight markets. In those areas, Kohl’s saw an increase in Kohl’s Rewards membership, an increase in shoppers getting the Kohl’s card and using it, and an overall sales lift, motivating the company to roll out the enhanced benefit.
Like most retailers, Kohl’s saw a big lift in sales last year to $19.433 billion, from $15.96 billion in sales in 2020. However, last year’s volume fell below the $19.97 billion-plus Kohl’s generated in 2019. Some competitors, such as Macy’s and Target, reported 2021 sales volumes that exceeded both 2020 and 2019 levels.
“Customers love our simplified Kohl’s Rewards program that leverages personalized offers and Kohl’s Cash,” Greg Revelle, Kohl’s chief marketing officer, said in a statement Monday. “We partnered closely with store associates and customers to understand how we could make our benefits even more robust. Now we’re taking our industry-leading Kohl’s Card to the next level by offering customers 50 percent more in Rewards every time they use their Kohl’s Card, providing them stronger everyday value when they shop at Kohl’s.”
Kohl’s also said that when customers apply for the Kohl’s card, and are credit approved, they receive 35 percent of their first purchase of qualifying items.
Those not using the Kohl’s card to make purchases still earn 5 percent Kohl’s Rewards.
Kohl’s Rewards balances are issued in $5 increments of Kohl’s Cash coupons on the first day of the following month.
Kohl’s Cash, which launched 16 years ago, is considered one of the industry’s most innovative spending incentives. Kohl’s Cash is of course, not actual cash — they’re coupons used like cash for purchasing at Kohl’s. Customers have 30 days to use the coupons.
The retailer also stages periodic promotions where Rewards customers receive $10 Kohl’s Cash for every $50 spent on qualifying purchases. Shoppers can use that Kohl’s Cash during designated redeem periods. During key selling periods, Kohl’s occasionally gives $15 Kohl’s Cash for every $50 spent. These are pivotal times for the Menomonee Falls, Wisc.-based retailer. While rolling out Sephora shops inside its stores and finessing its strategy to become a leading destination for casual and active clothing and accessories, Kohl’s is weighing several bids to acquire the company. Among those said to be bidding: the Simon Property Group in partnership with Brookfield Asset Management, The Hudson’s Bay Co., Sycamore Partners, Leonard Green & Partners, Starboard Value’s Acacia Research Corp. and The Franchise Group, which owns The Vitamin Shoppe.
In addition, Kohl’s has been under pressure from activist shareholder Macellum Capital Management, which is seeking to take control of the company’s board of directors and has been highly critical of the company’s management, strategies and financial performance. Macellum has proposed a slate of ten board members, which shareholders will either accept or reject at the retailer’s annual shareholder meeting scheduled for May 11. Kohl’s is urging shareholders to reelect its current 13 board members.