Kohl's Corporation vs Macy's, Inc.: Strategic Comparison

This in-depth comparison examines Kohl's Corporation and Macy's, Inc. across revenue, market value, business model, competitive positioning, and long-term growth strategy. Whether you are researching Kohl's Corporation on its own, evaluating Macy's, Inc., or weighing the two companies side by side, the breakdown below highlights where each company leads and where the gap between Kohl's Corporation and Macy's, Inc. is widest.

On the headline numbers, annual revenue is $15.5B (FY2025) for Kohl's Corporation and $22.6B (FY2025) for Macy's, Inc., while their respective market capitalizations stand at $2.0B and $5.8B. Both Kohl's Corporation and Macy's, Inc. are headquartered in United States. Their local markets and applicable rules may still differ.

Kohl's Corporation: Kohl's Corporation (NYSE: KSS) is headquartered in Menomonee Falls, Wisconsin. As of January 31, 2026 it ran 1,153 stores in 49 states, plus Kohls.com, and had an average of about 84,000 associates in FY2025. It became the largest U.S. department store chain by store count by building in suburban strip centers instead of malls. Its pitch is national brands at promotional prices. Since 2021 it has added Sephora shop-in-shops and Babies 'R' Us sections to bring in new shoppers. It has also gone through four CEO changes since 2022 while sales kept falling.

Macy's, Inc.: Macy's, Inc. is the largest U.S. department store operator by sales, headquartered at Herald Square in New York City. It runs Macy's, the mid-market department store chain; Bloomingdale's, its upscale fashion banner; and Bluemercury, a prestige beauty and spa chain. The company sponsors the Macy's Thanksgiving Day Parade (since 1924) and the Macy's 4th of July Fireworks. Its main challenge is that many Macy's stores anchor enclosed malls where traffic has fallen, while off-price chains and online retailers compete for the same shoppers. The company is headquartered in New York City, New York.

Kohl's Corporation and Macy's, Inc. pursue distinct approaches to generating revenue, and understanding how each company operates is the foundation of any fair comparison between Kohl's Corporation and Macy's, Inc..

Kohl's Corporation business model: 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.

Macy's, Inc. business model: Macy's is an omnichannel retailer that buys national brands (and develops private brands such as INC International Concepts, Charter Club and Hotel Collection) and sells them through stores and digital sites under three nameplates: Macy's, Bloomingdale's and Bluemercury. Merchandise net sales were $21.764B in FY2025. The remaining $857M of FY2025 revenue was 'other revenue', chiefly credit-card income from its partnership with Citi plus Macy's Media Network retail advertising. In Q2 2026, other revenue was $193M, including $156M of credit-card net revenue and $37M from Macy's Media Network.

The durability of a company's moat often decides long-term winners. Here is how the competitive advantages of Kohl's Corporation stack up against those of Macy's, Inc..

Kohl's Corporation competitive advantage: Most Kohl's stores are single-level boxes in strip and power centers, not in enclosed malls. Shoppers can park at the door, and the stores have avoided much of the mall traffic collapse that hurt Sears and JCPenney. Two other assets are hard to copy. One is the Sephora at Kohl's beauty shops, now in more than 1,100 stores. The other is a card-and-rewards loop, Kohl's Card plus Kohl's Cash, that ties promotions to repeat visits.

Macy's, Inc. competitive advantage: Macy's main advantages are national brand recognition, deep vendor relationships with major apparel and beauty brands, a proprietary credit-card and loyalty base, cultural assets such as the Thanksgiving Day Parade and Herald Square flagship, and an upscale banner in Bloomingdale's. Bloomingdale's comparable sales rose 11.3% in Q2 2026, its second straight quarter of double-digit growth, and Bluemercury gives the group a specialty prestige-beauty format.

Future prospects matter as much as current results. The growth strategies below explain how Kohl's Corporation and Macy's, Inc. each plan to expand from here.

Kohl's Corporation growth strategy: 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.

Macy's, Inc. growth strategy: Macy's Bold New Chapter strategy, announced in February 2024, has three parts: close roughly 150 underperforming Macy's stores through 2026, invest in a go-forward fleet led by the Reimagine 200 stores (more staffing, better assortments and visuals), and accelerate Bloomingdale's and Bluemercury, including small-format Bloomie's and new Bluemercury stores. It also leans on digital, private-brand refreshes, the Citi credit-card program and Macy's Media Network.

A closer look at the financial trajectory of Kohl's Corporation and Macy's, Inc. rounds out the comparison.

Kohl's Corporation: Kohl's revenue fell from a peak of about $20.2 billion in FY2018 to $15.5 billion in FY2025. Over that time, management cut inventory and reduced the dividend to $0.125 per quarter in 2025. It also refinanced debt at higher rates, including $360 million of 10.000% secured notes due 2030. FY2025 net income was $272 million, which included a $129 million interchange-lawsuit settlement gain. Results improved in 2026. In Q2 2026, ended August 1, net sales fell 0.9% to $3.3 billion, gross margin rose 305 basis points to 43.0%, and net income was $151 million ($1.28 per share). That quarter's margin got a boost from about $100 million of tariff refunds. Kohl's raised its FY2026 adjusted EPS outlook to $1.80-$2.40 and said it would restart share buybacks. Kohl's Corporation is a major American department store retail chain, sustaining a market valuation typically exceeding $3 billion amidst a shifting retail landscape.

Macy's, Inc.: Macy's revenue has drifted down from $25.4B in FY2022 to $22.6B in FY2025 as the company closes stores, but profitability has recovered from a $45M net income low in FY2023 to $642M in FY2025. Comparable sales turned positive for FY2025, and Q2 2026 marked the fifth straight quarter of comparable-sales growth. After Q2 2026 the company raised FY2026 guidance to $21.68B-$21.83B in net sales and $2.15-$2.35 in adjusted EPS. Owned real estate, including Herald Square, remains a significant asset and drew takeover interest from Arkhouse and Brigade in 2023-2024. Macy's, Inc. is a historic and monumental American department store chain, maintaining a market valuation generally around $4 billion amidst heavy retail transformation.