Holiday 2023 is an enormous test for whether Kohl’s latest management is getting it together.

No drastic changes in the vacation presentation are afoot, but loads of the more-expected type — like a give attention to gifts and comfy fashions — have been orchestrated, and may positively impact fourth-quarter selling after seasons of losing market share.

What is going to holiday shoppers notice at Kohl’s? A stronger emphasis on gifts, home decor, Sephora, pet supplies, impulse items by checkout areas, fashions focused on “cozy” styles, dress-up styles, flannel, faux leather, the colour red, sparkle, Western boots, simplified and clearer pricing and value offers, and greater convenience.

“We all know what we stand for,” Nick Jones, the chief merchandising and digital officer of Kohl’s Corp., told WWD. It’s also vital that Kohl’s maintains what customers are acquainted with, Jones added, and never risk losing them by making sudden sharp directional changes.

Holiday 2023 is an enormous test for the highest management at Kohl’s, which hasn’t been working together for all that long. It’s the primary Kohl’s Christmas for Thomas Kingsbury since he became CEO in February after serving as interim CEO starting December. It’s also the primary Kohl’s Christmas for Jones, who joined the Menomonee Falls, Wisc.-based retailer in February, and for Dave Alves, who became Kohl’s president and chief operating officer in April.

Gifts and residential decor from St. Nicholas Square are spotlighted within the front of store, adjoining to Sephora, where there’s more room now that certain checkouts have been relocated or taken out for greater merchandising impact near the entry. Gifting can be merchandised in “hot spots” across the store. As a part of the house presentation, there may be a selected latest range of tabletop, decor, barware and throws priced $30 and under.

Sephora might be an even bigger factor this yr: Sephora shops are in 900 Kohl’s stores now, in comparison with 600 a yr ago. “The gifting proposition in Sephora is far stronger when it comes to scale and volume,” said Jones. Along with makeup, skincare, fragrance and hair care, Sephora at Kohl’s can have a whole lot of beauty gift sets this yr. 

Jones also said that “impulse” areas near the checkout areas, which give last-minute selections like candy, snacks and toys, are stronger this yr.

Recognizing that vacation shopping might be very stressful and harried, Jones emphasized the importance of convenience and said that key gift categories like stocking stuffers and sweaters, in addition to holiday decorations, are merchandised in a more coordinated and readily accessible manner. Kohl’s also offers self-pickup for online orders, and aside from only one or two categories, comparable to sunglasses, keeps the overwhelming majority of its merchandise unlocked, unlike many other stores, which have locked up products in response to the recent waves of organized theft.

“We’re pushing more regular newness into the shop and we’re in a position to chase product,” as selling trends emerge, Jones said. “We’re very comfortable with our overall inventory position.”

On the style front, in women’s, executives cited brands like Simply Vera Vera Wang, Nine West, Draper James RSVP and LC Lauren Conrad for offering on-trend styles and festive partywear as key for holiday 2023.

On the comfortable side, sweaters, fleece tops and bottoms, jogger sets from Nike, Eddie Bauer, Columbia, in addition to private brands like Sonoma Goods for Life, LC Lauren Conrad and SO, and the exclusive collaboration with Crayola, were also cited as vital labels for holiday.

In men’s, executives cited the private Apt. 9 and Sonoma Goods for Life, in addition to Haggar and Tommy Hilfiger as key for polished casual looks and suiting options.

On the energetic side, Nike, Eddie Bauer and Columbia in addition to the FLX private brand were singled out as also key labels for holiday.

In response to Christie Raymond, chief marketing officer, “We all know apparel is the number-one gift for men and girls. There may be very little in our store you wouldn’t want to provide as a present or to yourself.”

Asked about how she sees holiday shopping playing out, Raymond said, “We’ve been seeing earlier shopping because the supply chain disruption of seasons past. We’ve seen some spreading out of the vacation shopping. But those key dates are still really vital, Black Friday, Cyber Monday. We do expect those to be really big days. Some customers are willing to attend to the very end. There might be last-minute shopping as usual. The season has been extending on each ends.”

Kohl’s has the advantage of being a real family store, with products for all ages and genders, having a status for strong values and enticing promotions, and being easier to buy given its off-mall locations, racetrack layouts and formats smaller than traditional department shops. Sephora at Kohl’s has been a success. Nonetheless, Kohl’s gets criticized for lacking enough differentiation with its assortment of national brands one can purchase at many other retailers, and a scarcity of fashion flair.

Kohl’s primarily targets blue collar and dealing class families, who’ve been hit hard by inflation and depleting savings from pandemic-related government assistance. In 2022, Kohl’s posted a net loss of $19 million in comparison with net income of $938 million and adjusted net income of $1.1 billion within the prior yr. Net sales decreased 7.1 percent to $17.2 billion from $18.5 billion with comparable sales down 6.6 percent.

For the second quarter of 2023, Kohl’s reported net income at $58 million, in comparison with $143 million within the year-ago period. Operating income was $163 million in comparison with $266 million within the prior yr. Net sales decreased 4.8 percent to $3.7 billion, and comparable sales were down 5 percent.

Raymond, in an announcement concerning the holiday presentation, said, “We all know customers are in search of the precise gift at the right value this holiday, and Kohl’s will offer a season stuffed with incredible deals, a broad assortment of gifts for everybody on their list, and an inspiring experience across our stores and on Kohls.com.”