Kohl's 2003 Annual Report Download - page 8

6
Profitable Expansion
Kohl’s continues to concentrate on profitable expansion.
We increased square footage by 20% in fiscal 2003, ending
the year with 542 stores compared with 457 stores at the same
time last year. And, there is a lot more growth ahead of us!
A Successful National Retailer
We opened 85 stores in fiscal 2003 and entered several major new
markets. In the spring, we entered the greater Los Angeles area
with 28 stores and San Antonio with three stores. In the fall, we
opened 13 stores simultaneously in Arizona, our 35th state. They
include 10 stores in the greater Phoenix area, two in Tucson and
one in Flagstaff. We made our debut in Nevada with three stores
in Las Vegas. We also entered Little Rock, Arkansas, with the
opening of three stores and Birmingham, Alabama, with two stores.
In addition to our entries into new markets, we made shopping
more convenient and introduced new customers to the Kohl’s
shopping experience in our existing markets. We opened 33 stores
in markets we already serve, including 12 stores in the Midwest
region, six stores in the Mid-Atlantic region, seven stores in the
Northeast region, four stores in the Southeast region, two stores
in the South Central region and two stores in the Southwest region.
At the same time, we continued to remodel our existing stores
to keep them fresh and new. In 2003, we remodeled, and in
some cases expanded, stores in Cincinnati, Dayton and
Indianapolis, to enhance our customers’ shopping experience.
In 2004, we will remodel our existing stores in Minneapolis
and Kansas City.
More Growth Ahead in 2004 and 2005
With our entry into California in 2003, we moved from being
a regional to a national retailer. Our focus for the next two years
is to increase our presence in all
of the regions we now serve.
In 2004, we plan to open
approximately 95 new
stores. In March 2004,
we opened 21 new
stores including
seven stores in Sacramento, three stores in Memphis and two
stores in Bakersfield, California. In April, we will open 26
new stores including five stores in San Diego and three stores
in Fresno. New market entries in fall 2004 include Salt Lake
City with five stores and San Francisco with 11 stores.
The remaining new stores will be opened in existing markets
spread across all regions of the country.
In 2005, we plan to open another 95 stores. We will continue
to increase our presence throughout the Southwest, as well
as in the other regions in which we currently operate.
Solid Infrastructure
We have the infrastructure in place to support our expansion.
In 2003, we continued to invest in our systems to further
improve customer convenience and store productivity.
Throughout our corporate office, distribution and credit
operations, new systems and enhancements provided additional
productivity and tools to help drive the business. Our IT
programs are continually evolving, as we develop new programs
and features designed to leverage expenses while increasing
capacity and improving efficiency and customer satisfaction.
Our seven distribution centers are strategically located to
support our existing stores, as well as further expansion in
the regions we currently operate. In 2005, a new distribution
center will open in Macon, Georgia, to serve our growing
Southeast region.
Kohl’s is on the map as a national retailer. With our well-
planned expansion strategy, proven ability to successfully enter
new markets and solid infrastructure, we look forward to bringing
the Kohl’s concept to many new customers in the years ahead.
Stores as of 1/31/04