Kohl's 2000 Annual Report Download - page 7

4Kohl’s Corporation
Expansion
Strategy
Kohl’s objective is to be a national
retailer. Our approach is very
deliberate, expanding step-by-step
into contiguous states and filling in
existing markets. We enter major
new markets with a critical mass of
stores that enables us to establish a
presence and leverage marketing,
regional management and distribution
expenses. Once established, we add
additional stores to further strengthen
our market share.
Many of Kohl’s stores are located in
the growing suburban areas of large
metropolitan markets, close to the
neighborhoods where our customers
live and work. In developing new
stores, we generally focus on
free-standing locations or power
strip malls that provide the visibility,
parking and ease of entry that our
customers prefer.
more expansion
Kohl’s Targets the Northeast
The opening of 35 stores in the tri-state market of New York, New Jersey
and Connecticut in 2000 was highly successful, with results that substantially
exceeded our initial projections. With this strong start, Kohl’s has captured
a solid share of one of the most attractive retail markets in the country.
Building on this base, we will expand into the Hartford/New Haven market
in 2001 and make a major entry into New England in 2002. Our New
England entry will be through the acquisition of 12 former Bradlees stores
in the Boston market and three stores in New Jersey, which we will remodel
and reconfigure to the Kohl’s prototype. The acquisition provides an excellent
opportunity to bring the Kohl’s shopping experience to customers in this
major Northeast metropolitan area.
We will support our Northeast expansion with a new distribution center
in New York state. Opening at the end of this year, the new center will have
the capacity to serve up to 100 stores.
New Stores in Atlanta and Arkansas
In spring 2001, we opened 34 stores, including our entry into the fast-
growing Atlanta market with 15 stores. As a major population center,
Atlanta has the ideal demographics for Kohl’s. We also entered Arkansas
for the first time with three stores, further strengthening our presence in
the South Central United States.
Kohl’s entered the
fast-growing Atlanta
market in spring 2001.