Kohl's Customer Experience Optimization Shows Initial Results, but Overall Business Remains Under Pressure
Kohl's CEO Michael Bender stated during the first quarter fiscal 2026 earnings call that the company's improvements to the omnichannel experience are reducing customer friction and enhancing consistency. Despite digital sales growing 4%, comparable sales decreased 1.1% year-over-year, with net sales falling to $3 billion, indicating ongoing pressure on business recovery.

Quick Takeaways:
- Kohl's CEO Michael Bender said on the company's Q1 2026 earnings call Thursday that the company'somnichannel experienceimprovements are reducing customer friction and increasing consistency.
- According to Bender, the retailer is updating its digital channels to improve discovery and navigation by adding more curated experiences, improved product presentation, and brand-level filtering.
- Bender emphasized on the call that Kohl's is prioritizing "journey assurance" to ensure inventory accuracy so customers can find the colors and sizes they want. He said, "This not only helps create a better customer experience, but also allows us to improve inventory turnover and ensure the freshness of seasonal merchandise."
Deep Dive:
Kohl's is updating its customer experience in small but potentially impactful ways in an effort to win back some of its most loyal customers. However, whether the retailer's efforts will be enough remains to be seen.
According to Bender, many of Kohl'seffortsover the past year have centered on re-engaging Kohl's credit card customers. In Q1 2026, comparable sales for this group were flat, improving from the previous quarter.
Online channels also performed well. CFO Jill Timm said traffic growth drove a 4% increase in digital sales for the quarter. "This performance is directly attributable to our strategic investments to modernize and enhance the digital experience."
Bender noted that the enhanced online experience, including theAI-powered gift finder toollaunched last month, will help improve conversion rates and further reduce friction over time.
"Together, these improvements are designed to make Kohl's more relevant, easier to shop, and more connected across the customer journey," Bender said.
Kohl's focus on winning back customers through foundational improvements rather than flashy upgrades is similar to the strategyTarget is adopting. Both companies still have a long way to go, but althoughTarget posted strong quarterly results, Kohl's is still working to return to growth.
In Q1 2026, comparable sales declined 1.1% year over year—which Bender calledin the earnings releasethe best comparable sales performance in more than four years. Net sales declined 1.7% year over year to $3 billion.
Kohl's in-store experience was mixed. The company revamped its private brands Tek Gear and Lauren Conrad in a shop-in-shop format, driving strong performance. But according to Bender, the Sephora shop-in-shop underperformed, with sales down low single digits.
In the past, Kohl's upgraded Sephora experience helped the retailer stand out from competitors. However, as Walmart launchesspecially trained beauty advisorsand Target rolls out dedicated in-store beauty experiences, the Sephora partnership may lose some of its unique luster.