December 23, 2025
Image Courtesy of Kohl’s
Is Kohl’s Cash a Winner?
While Kohl’s may have disappointed customers with merchandise changes and layout tweaks, its Kohls Cash rewards program continues to hold strong appeal.
A Wall Street Journal article, “The cult of Kohl’s Cash,” explores the how the simple program – offering $10 in Kohl’s Cash for every $50 spent – remains a core driver of customer retention for the mid-market department store chain. The program stands out for its ease of use, with Kohl’s Cash facing few restrictions (i.e., no Sephora purchases) in converting to real cash at checkout as long they’re redeemed on specific dates.
Kohl’s Cash’s generous payback, however, is the main attraction. Kohl’s Cash fans are known for bragging about the deals on social media. The WSJ talked to several who raved about the discounts they’re able to score by combining their Kohl’s Cash with the in-store discount. Members of Kohl’s loyalty program further earn 5% on purchases, convertible to Kohl’s Cash, with Kohl’s credit card holders netting 7.5%.
Suzanne Kapner, the WSJ’s retail reporter, wrote in the article, “Kohl’s Cash is fast becoming part of popular culture, much the way Bed Bath & Beyond’s ‘Big Blue’ oversize 20% off coupons were a touchstone before the retailer filed for bankruptcy.”
Some blamed Bed Bath & Beyond’s bankruptcy in large part on the coupons that trained consumers to never pay full-price. Bed Bath & Beyond brought back the “beloved Bed Bath & Beyond coupon” when reopening physical stores earlier this year.
Bill Warshauer, chief revenue officer at Tillo, a rewards and incentives platform, said shoppers on average spend 38% more than the value of the coupon in redeeming rewards. Many rewards are also never redeemed, reducing the costs to a retailer of such a program.
Kohl’s Cash an ‘Iconic’ and Critical Loyalty Tool?
On its third-quarter analyst call, Kohl’s CEO Michael Bender described Kohl’s Cash as an “iconic” and critical loyalty tool. He said, “We’re leading with compelling value to our customers, leaning into Kohl’s Cash and rewards, which helps drive repeat trips and increased engagement.”
He also said the retailer is doubling down on its “coupon-led promotional strategy” by making more national brands eligible for coupons. In August, Kohl’s published a list of 33 brands that had become coupon-eligible, including Lands’ End, Crock-Pot, Keurig, American Tourister, and Yankee Candle. Kohl’s was still able to increase gross margins in the quarter, despite the coupon emphasis, due to strong inventory management and an increased emphasize on proprietary brands.
Bender said the expansion of coupon-eligible led to a sharp uptick in sales being used with coupons to help drive traffic. Bender told analysts, “As we bring back in those [formerly excluded] brands, we continue to market them, we’re going to get more of their footsteps, particularly during this key holiday period.”
BrainTrust
Scott Benedict
Founder & CEO, Benedict Enterprises LLC
Bradley Cooper
Associate VP, Technology, SASR Workforce Solutions
Neil Saunders
Managing Director, GlobalData
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Discussion Questions
Does the Kohl’s Cash program appear to offer more benefits than drawbacks for Kohl’s?
What advice do you have around creating an effective coupon-led promotional strategy that doesn’t overly tax margins?
Poll
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Kohl’s Cash continues to be one of the most effective loyalty and value-generation tools in retail because it reframes spending as earning, turning routine purchases into future shopping power. During designated Kohl’s Cash earning periods, customers receive $10 in “cash” for every $50 spent, redeemable like a coupon on a future trip — a mechanic that drives repeat visits, larger baskets, and a kind of gamified savings behavior that consumers proudly share and strategize about on social platforms. The program’s simplicity — tied closely to overall spend rather than specific SKUs — makes it feel tangible and rewarding, especially in an era where shoppers are keenly focused on value but still crave the thrill of a good deal.
Less obvious is how Kohl’s Cash shapes shopping psychology: it creates a sense of “earned entitlement” that nudges customers back into stores or onto Kohl’s.com to redeem before expiry, often spending well above the value of the rewards. This effect not only increases traffic but often boosts full-price sales and cross-category exploration, reinforcing brand engagement beyond just discount hunting. That said, the program isn’t without its issues — expiration timing and communication around redemption windows can frustrate customers and staff alike — but the underlying mechanism remains a strong differentiator in a crowded loyalty landscape.
Ultimately, Kohl’s Cash works because it taps into fundamental retail behaviors: rewarding loyalty, encouraging repeat purchase, and making value feel personal and immediate. By anchoring promotions around this recognizable “currency,” Kohl’s has built one of the most talked-about loyalty incentives in U.S. retail, one that both retains existing customers and attracts deal-minded shoppers who might otherwise shop competitors.
Its certainly not the only store (in mid range) with a points program.
For the dedicated Kohls customer it works. (But when store near you closes?)
For others, however, it’s 1 more tiring game of what promo is good for what, at what spend level, and it expires when?
Consumers can tire of price games (or the word ‘scheme’, in other countries)… just wanting lower prices with out the hassle of wallet manipulation.
It’s transactional… and yes, shaping future annoyance when the program rules tighten!
Kohl’s Cash over the last few years has become increasingly less versatile due to premium brand restrictions (this also includes coupons and sales promo restrictions in the mobile app). What used to be a great way to stack discounts and then use store cash to offset the final cost has become hit or miss.
Kohl’s Cash is a strong program and is very important for core customers; and it has likely prevented Kohl’s sales from cratering more than they have. But, it is not a replacement for a good proposition and, on that front, Kohl’s continues to fail. Over the longer term, Kohl’s Cash cannot save Kohl’s if it doesn’t fix the core of its business. Indeed, that fact that Kohl’s has lost over 1.4 million customers over the past six or so years, demonstrates that Kohl’s Cash isn’t a magic wand that can simply be waved to retain customers.
Kohls Cash is operating in a world overflowing with price/purchase manipulation.
It’s a repetition lever than works for some. But those ‘some’ may be the most likely Kohls shoppers to start with… growing families in proximity to a store. In that case, does it replace branding?
For consumers that no longer have a store nearby, or tend to make returns… it has less overall value. The ‘cash’ goes away when you make returns (changed mind, bracketing, etc)… it much harder to figure out what a return refund amount will be.
Maybe it helps to keep steering for younger consumers… those less exhausted of decades of “% off”, BOGO and points.
It’s potentially of value if two conditions are met:
-The prices after the discount are better than elsewhere
-They have something you want to buy
I’ll not comment on how well Kohl’s fullfills these requirements, but I will say that being subjected to the ads – endlessly – is an example of a “negative externality”…very negative.
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Kohl’s Cash continues to be one of the most effective loyalty and value-generation tools in retail because it reframes spending as earning, turning routine purchases into future shopping power. During designated Kohl’s Cash earning periods, customers receive $10 in “cash” for every $50 spent, redeemable like a coupon on a future trip — a mechanic that drives repeat visits, larger baskets, and a kind of gamified savings behavior that consumers proudly share and strategize about on social platforms. The program’s simplicity — tied closely to overall spend rather than specific SKUs — makes it feel tangible and rewarding, especially in an era where shoppers are keenly focused on value but still crave the thrill of a good deal.
Less obvious is how Kohl’s Cash shapes shopping psychology: it creates a sense of “earned entitlement” that nudges customers back into stores or onto Kohl’s.com to redeem before expiry, often spending well above the value of the rewards. This effect not only increases traffic but often boosts full-price sales and cross-category exploration, reinforcing brand engagement beyond just discount hunting. That said, the program isn’t without its issues — expiration timing and communication around redemption windows can frustrate customers and staff alike — but the underlying mechanism remains a strong differentiator in a crowded loyalty landscape.
Ultimately, Kohl’s Cash works because it taps into fundamental retail behaviors: rewarding loyalty, encouraging repeat purchase, and making value feel personal and immediate. By anchoring promotions around this recognizable “currency,” Kohl’s has built one of the most talked-about loyalty incentives in U.S. retail, one that both retains existing customers and attracts deal-minded shoppers who might otherwise shop competitors.
Its certainly not the only store (in mid range) with a points program.
For the dedicated Kohls customer it works. (But when store near you closes?)
For others, however, it’s 1 more tiring game of what promo is good for what, at what spend level, and it expires when?
Consumers can tire of price games (or the word ‘scheme’, in other countries)… just wanting lower prices with out the hassle of wallet manipulation.
It’s transactional… and yes, shaping future annoyance when the program rules tighten!
Kohl’s Cash over the last few years has become increasingly less versatile due to premium brand restrictions (this also includes coupons and sales promo restrictions in the mobile app). What used to be a great way to stack discounts and then use store cash to offset the final cost has become hit or miss.
Kohl’s Cash is a strong program and is very important for core customers; and it has likely prevented Kohl’s sales from cratering more than they have. But, it is not a replacement for a good proposition and, on that front, Kohl’s continues to fail. Over the longer term, Kohl’s Cash cannot save Kohl’s if it doesn’t fix the core of its business. Indeed, that fact that Kohl’s has lost over 1.4 million customers over the past six or so years, demonstrates that Kohl’s Cash isn’t a magic wand that can simply be waved to retain customers.
Kohls Cash is operating in a world overflowing with price/purchase manipulation.
It’s a repetition lever than works for some. But those ‘some’ may be the most likely Kohls shoppers to start with… growing families in proximity to a store. In that case, does it replace branding?
For consumers that no longer have a store nearby, or tend to make returns… it has less overall value. The ‘cash’ goes away when you make returns (changed mind, bracketing, etc)… it much harder to figure out what a return refund amount will be.
Maybe it helps to keep steering for younger consumers… those less exhausted of decades of “% off”, BOGO and points.
It’s potentially of value if two conditions are met:
-The prices after the discount are better than elsewhere
-They have something you want to buy
I’ll not comment on how well Kohl’s fullfills these requirements, but I will say that being subjected to the ads – endlessly – is an example of a “negative externality”…very negative.