Kohl’s, once a cornerstone of American retail, finds itself in a precarious position as it navigates the turbulent waters of the Biden-Harris economy. Despite a recent earnings report that offered a glimmer of hope, the underlying issues facing the department store chain paint a far more troubling picture.

On the surface, Kohl’s recent performance might seem like a win. The retailer beat earnings expectations, posting 59 cents per share against an anticipated 45 cents. It even raised its profit forecast, a rare bright spot in a year that has seen its stock plummet by 32%. But make no mistake, these modest gains are little more than a Band-Aid on a wound that runs much deeper.

The reality is that Kohl’s is struggling to maintain its footing in a retail landscape that has become increasingly hostile under the economic pressures of the current administration. Stubborn inflation, rising interest rates, and a consumer base forced to tighten their belts are squeezing the life out of retailers like Kohl’s, which seem unable to adapt to the new normal.

Kohl’s CEO attempted to spin the earnings report as a sign of progress, touting improvements in cost control and inventory management. But this optimism feels out of touch with the company’s broader challenges. Kohl’s has long struggled with its identity, offering what many see as cheaply made clothing at prices that no longer resonate with today’s value-conscious shoppers. In an economy where every dollar counts, consumers are turning away from Kohl’s in search of better deals elsewhere.

The numbers don’t lie. While Kohl’s managed to beat earnings expectations, its comparable sales fell by a staggering 5.1% in the second quarter, more than double what analysts had predicted. This decline is a clear signal that Kohl’s is losing its grip on the market. In response, the company has been forced to lower its annual net sales forecast, now expecting a decline between 4% and 6%. Such downward revisions are not the hallmark of a company on the rise; they are a red flag that Kohl’s is in serious trouble.

Industry experts are sounding the alarm. Zak Stambor, a leading analyst, put it bluntly: “Kohl’s place in the retail landscape makes it highly vulnerable to swings in consumer spending patterns. While it is making progress on the bottom line, it must develop a stronger value proposition and unique market identity.” In other words, Kohl’s needs to figure out what it wants to be, and fast.

Kohl’s isn’t alone in its struggles—many retailers are feeling the squeeze as consumers grapple with the economic realities of the Biden-Harris era. However, competitors like Nordstrom have managed to navigate these challenges more effectively, with recent earnings reports showing that they are weathering the storm better than Kohl’s.

One of the few bright spots for Kohl’s has been its partnership with Sephora, which has helped offset some of the weaker sales from Kohl’s own brands. But even this success story is not enough to carry the company through the rough times ahead.

As Kohl’s looks to the future, it’s clear that significant changes are needed. The company must find ways to stand out from other big-box retailers, improve the quality and value of its products, and adapt to the economic realities of the current administration’s policies. Without these changes, Kohl’s risks continuing its downward spiral, with the possibility of bankruptcy looming if sales and profits continue to decline.

In a retail environment where only the strong survive, Kohl’s must decide whether it wants to be a contender or just another casualty of the Biden-Harris economy.