Kohl’s is a retail chain of department stores in the United States that deals in products such as clothing, footwear, furniture, decor, jewelry, beauty products, electronics, houseware, toys, appliances, and beddings. It is among one of the most profitable retail chain stores in America with a large customer base who keep coming back for more. However, despite it being well-liked, their product prices have become somewhat high in recent years. Let’s know Why Kohl’s is So Expensive?
Several reasons contribute to the high pricing of clothing, jewelry, shoes, and other products at Kohls compared to prices of similar items at other competitors’ stores. We will look at the reasons behind the high prices.
Reasons Why Kohl’s Is So Expensive
- High Quality of Clothing Products.
One of the main reasons why Kohl’s clothes are expensive is the cost associated with the production of the clothes. Kohl’s clothing is made with cotton, which is considered a superior fabric compared to other fabrics since it provides comfort and the material is long-lasting. Kohl’s have manufacturing plants all over Central America that produce high-quality cotton fabric and make clothes for private labels.
- Shipping Costs and Handling Fees.
Kohl’s has an online shop and always wants to make online shopping for their customers appealing and pleasant. Thus offering free shipping for goods bought worth $75 and above. While offering free shipping per item costs the company money since the ordered products have to go to a warehouse for packaging. The company has to pay rental fees for the warehouse and pay workers to package the products. This ends up costing the company more compared to a product bought at a physical location.
- Competition from Other Major Brands.
Kohl’s has competitors in the retail market such as target and TJ. Maxx, which has relatively low prices compared to Kohls but the customer experience, is far much better at Kohls than its competitors are. Kohls also has a large share stock in the market and to maintain this they need to have financial stability by making profit and sales which may explain why they are so expensive.
- Customer Experience and Satisfaction.
Kohls puts a lot of effort and time into training its staff to help its clients at any time with utmost respect and politeness this, in turn, gives customers a great and positive shopping experience while at Kohls’s.
To make sure that their stores can provide the best customer experience and satisfaction, they need to put money into training their staff constantly.
- Exclusive Brands of Clothes.
Kohl’s stores have collaborated with big high-end designers such as Narciso Rodriguez, Dana Buchman, and Vera Wang to help the store stand out from its other competitors and the clothes can only be bought at Kohl’s. The brands are limited since they are not mass-produced and the designers need to be paid leads to the clothes being sold at higher prices, thus being more expensive.
- Have A Large Number of Employees To Pay.
This is another reason why Kohls’s is so expensive. Employees at Kohls’s get paid about $15 an hour and this is slightly higher compared to competitors’ stores. That is why their products are slightly higher since they need to raise the pay for the employees and still make a profit.
- Business Tax.
Every company has to pay corporate taxes to stay operational. To raise these taxes, it is only reasonable for product prices to be high.
Inflation refers to the increase of prices over time. Inflation causes the product to cost more, therefore, they may require to raise the prices of their products.
- Clearance Sales.
Kohls conducts clearance sales from time to time. These clearance sales can cost the company profits especially products discounted down up to 50%. To balance out their loss, they increase the prices of other brands in the store.
- Kohls Furniture.
Kohls has a department that sells furniture that is exceedingly expensive because their furniture is from renowned builders made with high-quality and unique materials. This makes the prices of the furniture high. The shipping costs associated with making deliveries to their clients also contribute to the prices of the furniture being high.
Kohls’s is so expensive, and several reasons contribute to its higher pricing of items. Selling exclusive brands of clothes and making sure that they are on top of the game by ensuring customer satisfaction are factors that lead Kohls’s to be an expensive store to shop at.
Frequently Asked Questions
- Does Kohl’s mark up prices?
Yes, they do. From time to time, they mark up prices to cover the costs associated with the production cost of raw materials.
- Does Kohl have a reward program?
Yes, they have one. One can sign up for the reward program at Kohls’s to get the best deals and discounts and it is also a great way to save money.