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The headwinds facing the department store industry have weighed on Kohl’s and Macy’s, pushing two of the category’s biggest players to sharpen their positioning in a retail environment that increasingly rewards differentiation. In Q2 2026, both retailers saw traffic improve as they leaned into their distinct positionings – Kohl’s as a local, value-focused stop for everyday errands, and Macy’s as a destination retailer.
Kohl's Turns the Corner on Traffic
Quarterly visits to Kohl’s dipped just 1.4% year over year (YoY) in Q2 2026, a significant improvement from Q1, when visits declined 7.7% YoY.
And traffic continued to improve into the summer. Kohl’s posted back-to-back same-store visit growth in June and July – its first streak of monthly gains in roughly two years. And with first-quarter comparable sales reaching their strongest level since 2022, even while remaining slightly negative, the chain could be poised for sunnier days if visits maintain their early-summer trajectory.
Macy's Traffic Shows Signs of Stabilizing
Macy's is also seeing encouraging signs of traffic stabilization. In Q2 2026, the chain's YoY overall visit gap narrowed to just 3.6%, improving meaningfully from Q1 – a significant achievement for a chain that has been steadily closing stores.
On a monthly basis, same-store visits slightly outpaced overall visits, suggesting that traffic declines are easing at established locations as Macy's continues to streamline and upgrade its fleet – closing underperforming stores while expanding its Reimagine program. And by July, same-store visits were just 0.4% below year-ago levels.
For a chain that has already shown it can grow sales per visit, stabilizing traffic represents an important foundation upon which to build further.
Different Shopping Missions, Different Strategies
Each chain is recovering by leaning into a different shopping mission. Kohl’s is reinforcing its role as a value-oriented spot for routine shopping, while Macy’s is concentrating investment around a smaller fleet of destination stores. And the behavioral data suggests those strategies are well matched to each brand’s distinct positioning.
As part of its turnaround strategy, Kohl’s has shifted decisively into the value lane, expanding the brand eligibility of coupons, rolling out a $10 or less ‘Deal Bar’, and spotlighting ‘By Kohl’s,’ its family of proprietary labels. The strategy appears well suited for its existing audience: More than three-quarters of Kohl’s stores sit in strip centers, and in Q2 2026, 56.3% of visits came from within five miles, versus 35.9% for Macy's and 42.3% for the category. Kohl's also led on repeat and weekday visits, reinforcing its errand-style role.
Macy's chosen path toward rehabilitation, meanwhile, reflects its positioning as a destination retailer. In Q2 2026, 64.1% of visits to Macy’s came from more than five miles away, with a higher share of weekend shoppers than the category average and lower visit frequency. That makes consolidation less disruptive for customers already traveling farther. Macy's is instead focused on making each trip count – reimagining its stores, refreshing its assortment with more fashion-forward private brands, and leaning into occasion-driven experiences like its year-long "Celebrations Start at Macy's" platform.
Holidays on the Horizon
Kohl’s and Macy’s both exited Q2 with improving visit momentum. And with back-to-school season underway and the holidays on the horizon, the second half of 2026 will test whether these gains can hold as each leans into its unique strengths.
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