Kohl's 1998 Annual Report Download - page 6

jewelry and watches; as well as our footwear area with high
growth in both casual and dress styling.
Increased emphasis on our youth business, including young
men’s and juniors, will help to boost 1999 sales. Fashion news
and attention to trends are critical here. Name brands such as
Union Bay are also important, as well as fashion-based sub-
brands such as Pipes by Lee and Levi L2.
Brand Name Leader
Kohl’s continues to be the market leader for children's denim and
khaki, carrying the best in fashion and basic styling from the
major brands: Lee, Levi, Dockers, Union Bay, Mudd and our own
Genuine Sonoma Jean Company. We are expanding our girls’
dress assortment to meet strong customer demand, especially in
our warmer climate stores. We’re also expanding our offerings
from
Carter’s for infants, toddlers and small children, including
Carter’s for little boys (4-7). Our Healthtex line will also grow in
1999 to include items from infant to big girl sizes.
We remain committed to our sports apparel
business, with brands like
Adidas, Nike and
Champion. Kohl’s focus on this area extends
to the whole family. Last fall, we added the
Russell Athletic brand into men’s apparel with
great success. In 1999, Russell will expand
into women’s and children’s apparel. 1999
will also see expansion of our Nike shops
with exciting new displays and items for
men, women and children.
Home is another one of our customers’
favorite areas at Kohl’s as they look for new ideas and acces-
sories for their living space. Our new fashion-driven frame styles
are very popular all year round, and customers like our wide
selection of top brand names in small appliances. Both our bed
and bath areas are experiencing healthy growth in fashion and
basic items. Here too, our brand selection is wide, featuring
Fieldcrest and Springmaid.
The typical Kohl’s customer is a
woman shopping for herself, her
family and her home. With today’s
hectic pace, we know what our customers want from their
department store. We strive to offer them the quality name
brands they prefer with basic items always in stock. Our cus-
tomers can always find the items they need easily and check
out quickly, saving them valuable time. Kohl’s is well-known for
our convenient, pleasant shopping experience and most impor-
tantly, providing value for our customers.
In 1998, Kohl’s focused on our primary customers more
than ever. 1998 was a great year across a broad scope of
women’s classifications, which we see as an underdeveloped
business opportunity.
Major Growth in Women’s Wear
Dresses saw the biggest comparable store increases of any
area at Kohl’s in 1998. Our women’s career lines were also
popular with customers. We'll keep that momentum going in
1999 with new brands and expanded assortments. In addition,
our
Villager by Liz Claiborne and Sag Harbor lines will be
strengthened and our newest line,
Norton McNaughton, will be
expanded in 1999.
Women’s casual and weekend wear brands continue to experi-
ence growth.
Dockers, Levi, Lee and Gloria Vanderbilt are all
strong performers as is
Genuine Sonoma Jean Company, our
private label brand that complements this broad selection. Our
wide assortment of women’s intimate apparel continues to
appeal to our customers and it’s expected to grow even more
in 1999. Kohl’s carries all major national brands in this area
including:
Jockey, Warner’s, Olga, Maidenform, Vanity Fair and
Playtex and in 1999, Lily of France.
Growth and expansion in women’s products also extends to
accessories such as sunglasses, hair accessories, hosiery, fine
Finding trusted kitchen appliance
brand names like Krups and
Cuisinart is important to Kohl’s cus-
tomers.
Kohl’s M ost Valued
Customer Card
Once customers experience the Kohl’s concept
firsthand, their loyalty is strong. To recognize
this support and strengthen our relationship
with our best customers, Kohl’s introduced the
Most Valued Customer Card (MVC) in 1998 and it
has been a resounding success.
While all Kohl’s customers benefit
from exceptional value, Kohl’s
MVCs get a little bit more.
Designed to thank our best cus-
tomers, the MVC program offers
specialized savings and target-
ed promotions. All Kohl’s
MVCs receive a gold Kohl’s
credit card, indicating their
MVC status, as well as
advance notice of certain new items
and special offers. There will even be a quarterly
newsletter targeted to each MVC’s location and
buying preferences. And that's just the begin-
ning.
While it is still a very new program, early indica-
tors are that the Kohl’s MVC program is a hit
with customers. Our successful 1998 holiday sea-
son sales were due in part to increased
purchases by our MVCs, indicating the excellent
growth potential of this new program.
Customers love our name brands and value.
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Working women appreciate Kohl’s great
selection of corporate casual styles.