Kohl's raised its full-year 2026 outlook even as Q2 comparable sales fell 0.9% year over year to $3.3 billion, while digital sales improved over the same period (Digital Commerce 360 - AI). Kohl's online sales rose 2.8% in Q2 2026, and the company attributed growth partly to increased use of customer-facing artificial intelligence to help conversion (Digital Commerce 360 - AI). CEO Michael Bender noted that adoption is still small, but customers who engage with the AI shopping assistant are showing stronger conversion and higher revenue per visit (Digital Commerce 360 - AI).
Kohl's AI assistant, powered by Google's Gemini technology, launched for the 2026 back-to-school shopping season (Digital Commerce 360 - AI). Industry experts highlighted that conversion and revenue-per-visit gains are significant because they indicate the assistant is helping shoppers make purchasing decisions rather than simply browse longer (Digital Commerce 360 - AI). For commerce practitioners, this distinction matters: engagement is easier to generate, but confidence at the moment of decision is what drives margin improvement and reduces costly returns (Digital Commerce 360 - AI).
Kohl's marketplace business also grew 88% compared to the prior year and is becoming a more meaningful contributor to overall performance (Digital Commerce 360 - AI). Experts cautioned that while the AI-powered shopping assistant is a positive step, one quarter of gains does not constitute a turnaround, and Kohl's faces significant competition from larger retailers with bigger budgets (Digital Commerce 360 - AI).