Kohl's Corporation
Acquisitions
1
Major Deals Covered
$192M
Disclosed Deal Value
Kohl's's largest disclosed acquisition here is Federated's Main Street Stores for $192M in 1988. This page covers 1 major deal, each with its price where disclosed and the reason behind it.
| Company | Year | Price | Purpose |
|---|---|---|---|
| Federated's Main Street Stores | 1988 | $192.0M | Entry into the Chicago, Detroit and Minneapolis-St. Paul markets, Kohl's first major expansion outside Wisconsin. |
1988
$192M
Entry into the Chicago, Detroit and Minneapolis-St. Paul markets, Kohl's first major expansion outside Wisconsin.
This gave Kohl's three large metro markets and a model for converting acquired stores, which helped set up the 1992 IPO.
Successful. Kohl's went on to expand nationally and reached California in 2003.
Bender's plan is narrower than earlier turnarounds. It leans on value pricing and proprietary brands, a return of coupons the core customer likes, and categories that are growing such as Sephora beauty, toys, home and impulse gifting. It also relies on lower inventory and expenses. In Q2 2026, management said proprietary brands, Kohl's Card sales, home, toys and digital all improved. Kohl's is also restarting share repurchases now that its balance sheet is stronger.
Kohl's makes money mainly by selling merchandise. In FY2025 net sales were $14.8 billion of $15.5 billion total revenue. It runs a high-low promotional model: frequent percent-off coupons, Kohl's Cash rewards and clearance events bring shoppers back. Its mix combines national brands such as Nike and Levi's with higher-margin private labels like Sonoma Goods for Life, Croft & Barrow and Apt. 9. The rest of revenue, $668 million of 'other revenue' in FY2025, comes mostly from Kohl's share of profits on the Kohl's Card, whose accounts are owned by Capital One. Smaller pieces are advertising and gift-card breakage. Stores also serve as pickup and ship-from-store points for Kohls.com.
Rather than buying corporate brands, Kohl's expanded by acquiring real estate leaseholds from bankrupt or downsizing retail chains, including acquiring 33 former Caldor stores in the Northeast in 1999 and 28 former Mervyn's locations in California in 2004.
In 2003 and 2004, Kohl's executed a bold Western expansion, opening dozens of stores simultaneously in California and the Pacific Northwest, acquiring former Mervyn's department store locations and establishing immediate West Coast market presence.
Kohl's acquired and licensed prominent designer and celebrity lifestyle brands over two decades, including exclusive long-term partnerships with Simply Vera Vera Wang (2007), LC Lauren Conrad (2009), and Rock & Republic (2011).
In 2022, Kohl's entered exclusive acquisition negotiations with retail holding company Franchise Group (backed by Oak Street Real Estate) at $60 per share ($8+ billion), but terminated discussions in July 2022 due to financing market deterioration and retail macroeconomic volatility.
In March 2024, Kohl's partnered with brand management firm WHP Global to open 200 Babies 'R' Us shop-in-shops inside Kohl's stores, acquiring exclusive rights to distribute Babies 'R' Us branded nursery, diapering, and baby care products in US department stores.
In December 2020, Kohl's signed a landmark long-term strategic partnership with LVMH's Sephora, replacing JCPenney as Sephora's exclusive department store partner and investing hundreds of millions to build Sephora shops in over 1,000 Kohl's locations.
Historically, the original Kohl's grocery store chain (Kohl's Food Stores) was separated and sold to Great Atlantic & Pacific Tea Company (A&P) in 1983 and later closed, allowing Kohl's to focus 100% of its resources on its department store operations.
Kohl's avoids taking on acquisition debt to buy external retailers, preferring capital-efficient shop-in-shop partnerships (Sephora, Babies 'R' Us, Amazon Returns) that generate foot traffic and sales with shared operational risk.
Kohl's is highly unique because they almost never acquire other companies. Instead of buying external brands, their massive strategy is developing "Private Label" brands entirely in-house (like Sonoma Goods for Life, Croft & Barrow, and Apt. 9). Because Kohl's owns these brands completely, they do not have to pay massive royalties to external designers, significantly boosting their profit margins.
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