Retail Trends During An Unconventional Holiday Season and Beyond

The retail industry has faced significant changes this year due to COVID, and we’ve all been challenged to better understand where the consumer is headed. One of the most important and rewarding parts of my role as CEO has been connecting with Kohl’s store managers, associates and consumers across the country to identify what this means for Kohl’s and how we can continue to stay one step ahead in meeting the evolving needs of our customers.

I’ve always been passionate about better understanding consumer behavior and these next several months provide a significant opportunity for all retailers. I continually challenge the Kohl’s team to drive more innovation and new thinking to deliver against our customers’ ideal retail experience—whether that’s through new products and brands to discover, enhancements to the service we provide every day, or new conveniences that will make their lives a little bit easier.

Kohl’s has always done a great job of this. However, in a year full of uncertainty and change —and as we are now in retail’s busiest time of year—it’s been more important than ever that we remain agile, bold and creative. With more than 65 million customers, we’ve leaned into our own data and insights to identify the shifts and emerging trends in shopping behaviors we expect to see this holiday season and beyond.

Embracing the Homebody Mindset

One of the biggest shifts this year has been the renewed importance of “home.” With consumers’ homes becoming the backdrop for the majority of family activities—from working and learning remotely, to cooking, relaxing, and even exercising. With fewer people traveling this holiday season, we can expect to see a focus on anything that makes the home a more functional, comfortable or joyful place to be. In October, product categories such as kitchen electrics, blankets and throws, air purifiers, and vacuums, topped our list of most-viewed products on Kohls.com, which is a significant increase compared to this time last year.

With more time spent at home, we’re also seeing an emphasis on comfortable and casual apparel. In October, we saw a more than 100% increase in searches for “cozy” apparel and accessories compared to last year, as well as more customers shopping for slippers and sleepwear—including an early interest in matching family holiday pajamas!

An Increased Focus on Health & Wellness

As we continue to live out the COVID-19 pandemic, Americans have said they are more concerned about staying healthy and more interested in wellness and exercise this winter. The amount of time spent outdoors and the use of wellness apps and digital exercise machines are up 60 percent this year, according to new data from McKinsey, which will likely prompt a greater interest in outerwear, activewear, and wellness gear. Kohl’s is already a destination for the active lifestyle, having nearly doubled our active business since 2013—and we see this trend accelerating even further in the coming months and years ahead.

The Importance of Value

In addition to a shift in top product categories, another key trend we’re seeing is the importance of value. With the pandemic taking a significant economic toll on our country, almost all consumers will be looking for greater value this season. Kohl’s has always stood for great value, and I am pleased that we just introduced our updated Kohl’s Rewards program in time for the holiday season. Ultimately, all retailers will need to be sensitive to the economic pressure that their customers are feeling in the months ahead.

A Rapid Acceleration to Omnichannel

Importantly, one of the most pronounced shifts we are seeing is how people are shopping, with the pandemic dramatically accelerating customers’ adoption of digital commerce. We expect to see continued momentum in digital—whether ordering online for home delivery or in-store pick up—as well as digital browsing to prepare for an in-store visit. According to Kohl’s insights team, more than half of Kohl’s shoppers plan to do a significant amount of their holiday shopping online this year.

New conveniences like curbside pick-up will be welcomed by time-strapped families over the holiday season. Already, nearly a third of Kohl’s online pick-up orders are being picked up via Kohl’s Drive Up service. And for those who choose to shop in-store, we know safety will be a top concern as they look for retailers who prioritize health and safety measures. I am so proud of how our teams continue to make safety our top priority for our customers and associates.

No matter how people shop this season, in-store or online, one tenet holds true: convenience will be paramount. People, especially parents stretched thin by work and homeschool, will be looking for experiences that deliver the most efficiency and impact for their time. Ultimately, time may be the key word in all of this. What I am hearing and seeing from customers and associates is that there will be a greater focus and premium on time—and spending their time on things that matter most, like with family and loved ones.

After a dynamic and challenging year, I will be looking forward to spending time with my own family this holiday season. While we will all reflect on our experiences from 2020 for years to come, I know one of my biggest takeaways will be to never take for granted the power of human connection—and I look forward to the day where that can happen a little more in person. I hope you all have a wonderful Thanksgiving.