Jack the prices up and then mark 40% off - that seems to be their policy. Don't be fooled by the big sales at Kohl's. While shopping there just yesterday I found that toys normally priced around the $20 mark were regularly priced closer to $40 with a sale sign on display for 40% off, still a higher price, even with the discount, than I could pay at many other stores for the same item.
I did find a beautiful sweater that was $40 originally, marked down to about $16 so if a clothing item is what you're looking for, there's a good chance you'll find a deal or two but if you're looking for great deals on toys, don't get your hopes up - find another store.
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