Kohl’s on Monday (May 2) launched an enhancement to its rewards program that gives card members an elevated rate of 7.5% rewards on each purchase.
The new rate — up from 5% — also lets members receive personalized deals and perks throughout the year, along with a birthday gift.
“Customers love our simplified Kohl’s Rewards program that leverages personalized offers and Kohl’s Cash,” Greg Revelle, Kohl’s chief marketing officer, said in a company press release. “We partnered closely with store associates and customers to understand how we could make our benefits even more robust.”
New customers can apply for a Kohl’s Card and, assuming they get credit approval, get 35% off their first purchase and enroll in the rewards program in-store or online.
Kohl’s said it has been piloting the enhanced rewards offering for the last year in more than 100 stores in eight markets, and “saw an increase in Kohl’s Rewards enrollments, more Kohl’s Card acquisitions and usage, and an overall sales lift,” leading the chain to launch the program on a national basis.
Last week, reports emerged that JCPenney owners Simon Property and Brookfield Asset Management were considering an acquisition deal for Kohl’s that values the retail rival at an estimated $8.6 billion.
Simon and Brookfield, two of America’s biggest mall owners, purchased JCPenney out of bankruptcy in 2020. Their proposal would see them buy Kohl’s for $68 a share, sources close to the talks told the New York Post.
If the deal goes forward, JCPenney and Kohl’s would each function as independent brands with the goal of streamlining operating overhead and other expenses. One source told the Post that Simon and Brookfield want to reduce Kohl’s costs by $1 billion by 2025.
Headquartered in Menomonee Falls, Wisconsin, Kohl’s put itself up for sale earlier this year after activist investors Macellum and Engine Capital said they were unhappy with the direction of the retailer.
Kohl’s has had several acquisition inquiries, including apparent interest from private equity firms Sycamore Partners and Leonard Green & Partners, along with Hudson’s Bay, the Canadian parent of Saks Fifth Avenue.