Kohl’s Sees Q3 Sales Drop 3% and Launches $10 ‘Deal Bar’
In Q3 2025, Kohl’s net sales declined almost 3% year-over-year while operating income fell 25% to $73 million and foot traffic dropped 2.4%. The retailer is adding a “Deal Bar” at the front of every store offering gifts and essentials priced $10 or less to lure back price-conscious customers.
1. Third-Quarter Sales and Traffic Decline
In the third quarter of fiscal 2025, Kohl’s net sales declined almost 3% year-over-year while operating income fell 25% to $73 million. In-store foot traffic also dropped 2.4% year-over-year, highlighting persistent customer engagement challenges.
2. Introduction of Deal Bar Section
To attract value-seeking shoppers, Kohl’s is rolling out the “Deal Bar” at the front of every location, featuring gifts and everyday essentials priced at $10 or less. The assortment, refreshed throughout the year, also extends online with a selection of items under $5.
3. Targeting Budget-Conscious Consumers
This move targets budget-conscious consumers as discretionary spending remains pressured, with over one-third of shoppers planning to curb apparel purchases and a majority expressing concerns about rising living costs. Kohl’s joins other retailers expanding low-priced offerings to drive traffic and sales.