Kohl’s is countering Amazon’s Prime Day sales event with its own promotion with a strong home merchandise component.
The event falls as Kohl’s continues working to turn around the business after restrictions set to quell COVID-19 restricted its operations during the pandemic, which lead to a significant first-quarter beat on Wall Street earnings estimates.
With a run from Monday, June 21 to Tuesday, June 22, the Kohl’s WOW Deals event runs in the same period as Prime Day, differing from Target and Walmart counter promotions that extend longer. The WOW deals even has a Kohl’s twist in that many bargains have a Kohl’s cash component rather than traditional percentage-off discount. In that way, Kohl’s promotes its complex couponing and loyalty program at the same time it tempts consumers with bargains.
WOW Deals features discounts across the home, toy, beauty and apparel product categories. However, home gets particular emphasis including among the products initially featured for special consideration as Kohl’s announced its WOW Deals promotions:
- $199.99 Shark ION Wi-Fi Connected Robotic Vacuum or Navigator Lift-Away ADV Upright Vacuum with $30 Kohl’s Cash awarded at purchase
- $149.99 Google Nest Hello Video Doorbell with $30 Kohl’s Cash awarded at purchase
- $139.99 Cuisinart 12-piece Ceramic Cookware Set with • • $20 Kohl’s Cash awarded at purchase
- $99.99 PowerXL Vortex 10-quart Air Fryer Pro with $10 Kohl’s Cash awarded at purchase
- 40% off Food Network Kitchen & Dining
- 25% off Nike, Under Armour, adidas and Champion Activewear for Kids
- 50% off Lands’ End swimsuits
In debuting its WOW deal event, Kohl’s spotlighted its particular customer programs and shopper services. In addition to the deals it offers each day of the event, customers can earn $10 in Kohl’s Cash for every $50 spent on purchases during WOW Deals, which can then be used to save on future Kohl’s purchases. Also, Kohl’s Card customers can get an additional 15% off exclusive offers on top of the WOW Deals prices. Consumers can shop WOW Deals in store, Kohl’s stated, or online for delivery, limited-contact drive up at most locations, or in-store pickup. At the same time, the retailer is spotlighting its Kohl’s App, which provides the option of scanning and storing Kohl’s gift cards, Kohl’s Cash and
savings offers, while managing Kohl’s Rewards loyalty benefits in a mobile wallet. Customers also can use Kohl’s Pay at checkout to connect with a Kohl’s Card account and apply offers, Kohl’s Rewards, Kohl’s Cash and pay with one scan.
In the first quarter, Kohl’s net income was $14 million, or nine cents per diluted share, versus a net loss of $541 million, or $3.52 per share, in the COVID-19 impacted period a year earlier. Adjusted net income was $165 million, or $1.05 per diluted share, versus a loss of $495 million, or $3.22 per diluted share, in the quarter a year before.
Kohl’s easily bettered a MarketBeat-published analyst average estimate for a loss of three cents per adjusted diluted share in the quarter.
Net sales were $3.89 billion versus $2.43 billion in the year-prior quarter. Kohl’s didn’t offer comparable store sales data.
In a company conference call, Kohl’s executives stated that the company’s digital sales increased 14% versus the 2020 quarter and 40% versus the 2019 period.
Home department sales advanced in the low-double digits on a two-year basis.
Although home sales remain strong, Kohl’s emphasized its upcoming roll out of the Sephora business in its stores during the conference call and it’s moves to highlight and push activewear and casual apparel, which the company believes will be strong as consumers emerge from coronavirus-related movement and gathering restrictions regarding socialization and workplace access.
In December, 2020, Kohl’s and Sephora announced a long-term strategic partnership resulting in the addition of 2,500 square foot space designated Sephora boutique operations at the front of Kohl’s stores. Plans call for the first 200 Sephora at Kohl’s departments to open in the fall 2021 and expand into at least 850 stores by 2023. In addition, the Kohls.com online beauty operation will become an exclusive Sephora showcase.
