Why Kohl’s Thinks Private Labels Could Be Its Big Comeback Story

Why Kohl’s Thinks Private Labels Could Be Its Big Comeback Story

Introduction

If you’ve been following retail news at all, you’ve probably noticed that Kohl’s has been in the spotlight for all the wrong reasons over the past couple of years. Sales have been sluggish, customer foot traffic isn’t what it used to be, and competitors—both online and offline—have been stealing attention.

But here’s the thing: Kohl’s isn’t giving up. Actually, the company is doubling down on something that might sound old-fashioned at first but could be surprisingly smart—private label brands.

You know, those in-house clothing, home goods, and lifestyle brands that carry the store’s name instead of Nike or Levi’s? For a long time, they were treated as the cheaper cousins of “real” brands. But in 2025, the retail game has shifted, and Kohl’s thinks private labels could be the key to getting its groove back.

So, why does this matter, and can private labels really rescue a struggling department store? Let’s break it down.

Kohl’s Has a Problem—But Also a Chance

The problem is clear: traditional department stores are getting squeezed from every angle. Amazon makes online shopping feel frictionless. Walmart and Target dominate the “value” game. Specialty stores and direct-to-consumer brands grab the trend-driven shoppers.

So what happens is, Kohl’s sits in the middle—too pricey to beat the discount giants, but not flashy enough to compete with higher-end stores. That’s a rough place to be.

But the good news is, Kohl’s actually has a chance to play offense with private labels. By creating and controlling its own brands, it can avoid the constant pricing wars with national labels and focus on building loyalty directly with shoppers.

Why Private Labels Work in 2025

Private labels aren’t new, but the timing feels different now. In fact, consumer behavior has shifted in a way that makes this strategy much more attractive.

  • Shoppers are more price-conscious. Inflation has made people think twice before paying $80 for jeans with a logo.
  • Brand loyalty is weaker. If the quality is good, people don’t care what the tag says.
  • Other retailers proved the model works. Target’s Goodfellow & Co. and Costco’s Kirkland Signature are success stories.
  • Margins are better. Kohl’s keeps more of the profit when it owns the brand.

Actually, there’s also a cultural side. Younger shoppers, especially Gen Z, want value plus style. They’ll happily buy a private label brand if it feels authentic, eco-conscious, or TikTok-worthy.

What Kohl’s Is Really Betting On

Kohl’s isn’t just sprinkling in a few house brands—it’s making private labels the centerpiece of its comeback. Here’s what that looks like:

Focus AreaWhat It Means
Fresh DesignsNot the boring basics of old—new private labels are trend-aware.
Better PricingA sweet spot: more affordable than national brands but not “cheap throwaway.”
Web Portal PushStronger digital storefronts with order tracking, CNIC check–style confirmations.
Payment TrackingTransparent systems that let customers follow orders in real time.
Loyalty IntegrationPoints and perks for private label purchases to keep shoppers coming back.
Latest Method in RetailUsing AI insights, customer data, and geo-optimization to design collections.

Notice how this is less about “just clothes” and more about the whole shopping journey. Kohl’s is basically saying: “We’ll give you stylish products, better value, and the digital convenience you expect in 2025.”

The Online Piece of the Puzzle

Here’s where things get really interesting. For Kohl’s comeback plan to work, private labels can’t just live in stores—they need to thrive online.

That means the web portal experience matters a lot. Customers expect modern e-commerce features: instant online confirmation of orders, transparent payment tracking, and simple return options. Think of it like when you do a CNIC check online—you want the process fast, accurate, and trustworthy.

Kohl’s has been investing in this space, making private labels more visible on its digital shelves, and adding smoother processes that feel like the latest method in e-commerce. In other words, it’s not just about selling jeans, it’s about creating confidence in the full purchase cycle.

Will Shoppers Buy Into It?

The big question: will customers actually care about Kohl’s private labels?

Well, that depends on execution. Shoppers don’t automatically trust store brands—they need proof of quality. If Kohl’s nails the style, materials, and price point, it could win people over. But if it feels like the same old “generic” stuff, then it won’t move the needle.

One advantage Kohl’s has is that it can test quickly. It doesn’t have to wait for Nike or Levi’s to roll out a new line. If a TikTok trend explodes, Kohl’s could, in theory, launch a private label response faster. That agility might be the hidden weapon here.

What Analysts Are Saying

Retail analysts are cautiously optimistic. Some say private labels alone won’t fix Kohl’s—it still needs partnerships (like Sephora), a sharper loyalty program, and better marketing. But most agree private labels can boost profit margins and give Kohl’s a clear identity.

In fact, several big retailers that leaned hard into private labels during the last few years are seeing better-than-expected results in 2025. If Kohl’s executes well, it could ride the same wave.

The Risk Factor

Of course, nothing’s guaranteed. The risk is that Kohl’s might overinvest in private labels and alienate shoppers who do still want national brands. Or, it might push private labels too hard without fixing the in-store experience, which has been criticized for being cluttered and outdated.

But honestly, given where Kohl’s is, the bigger risk is doing nothing.

Final Words

Kohl’s betting on private labels might sound like a gamble, but it’s a gamble worth taking. With better designs, smarter pricing, stronger digital systems (like transparent payment tracking and easy online confirmation), and loyalty perks, private labels could give the brand new life.

Retail in 2025 is about trust, value, and convenience. If Kohl’s gets those right, it could turn private labels from a survival tactic into its big comeback story.

FAQs

Q1: Why is Kohl’s focusing on private labels?
Because private labels give Kohl’s higher margins, more control, and a chance to stand out in a crowded retail market.

Q2: Are Kohl’s private labels cheaper than name brands?
Yes, usually. But Kohl’s is aiming for “value plus style,” not just being the cheapest option.

Q3: How does the online shopping experience tie in?
Kohl’s is investing in its web portal with smoother payment tracking, fast online confirmation, and the latest e-commerce methods.

Q4: Is Kohl’s copying Target or Costco with this move?
In some ways, yes. But Kohl’s wants to put its own spin on private labels to attract a middle-market audience.

Q5: Will private labels alone save Kohl’s?
Not by themselves. But paired with partnerships, loyalty programs, and digital improvements, they could be a big part of the turnaround.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *