Kohl’s saw revenue decline in the third quarter, which an analyst blamed to the department store chain’s lack of modern and engaging store experience, making it lose customers and its market share.

The company’s net sales fell 5.2 per cent year over year to $3.8 billion, with comparable sales declining 5.5 per cent.

“The blunt truth is that Kohl’s is a retailer that lacks energy and difference; it is rather mundane and feels tired and uninspiring. This puts it on the back foot even at the best of times, but in the current pressured consumer environment it is a recipe for decline,” said Neil Saunders, MD at GlobalData.

“This is especially so as Kohl’s core customers are slightly more affected by the cost-of-living crisis than those of other department stores.”

The department store chain’s net income fell 39.2 per cent to $59 million while gross margin increased to 38.9 per cent.

“Our strategies to reposition Kohl’s for improved sales and earnings performance remain in the early stages. The work we have done in 2023 will continue to build momentum and set us up to be successful in 2024,” said Tom Kingsbury, CEO at Kohl’s.

For the full-year, the company forecasts net sales to decrease 2.8 per cent to 4 per cent.