Kohl's 2004 Annual Report Download - page 5

Diego, Fresno and Bakersfield. Other new markets in 2004 included
Salt Lake City, Utah; Memphis, Tennessee; and Rochester, New York.
We also continued to open additional stores in established markets.
In 2005, we will open approximately 95 new stores, increasing
square footage by 15%. Kohl’s will enter the state of Florida with
stores opening in Orlando and Jacksonville in the fall. Consistent
with our expansion in other regions, we will open a new distribution
center in Macon, Georgia, to support our growth in the Southeast.
We will also continue to expand our presence in our existing markets
in order to increase market share.
Our capital structure is well positioned to continue to support our
expansion plans. Capital expenditures in 2004 were funded entirely
through internally generated cash and we expect to fund our future
expansion in the same manner.
DIFFERENTIATING KOHL’S In 2004, we continued to build the
Kohl’s brand to maximize our customer base and attract new
customers. The foundation for our success is our well-established
concept of brands, value and convenience. We are focused on our
core customer – a busy mom shopping for herself, her home and
her family. We offer the national brands she wants, along with
strong private brands. Our new exclusive brands further differentiate
Kohl’s in the marketplace.
One of our biggest competitive advantages is convenience. From our
commitment to being in-stock in a broad variety of merchandise
categories to our neighborhood locations with easy in-out parking,
wide aisles, quick checkout and hassle-free returns, the Kohl’s concept
is designed with our core customer in mind. Our strong credit card
loyalty program, values every day throughout the store and friendly
Associates further enhance the Kohl’s shopping experience.
EXPECT GREAT THINGS In 2005, we will begin moving Kohl’s
to the next level as a company. Our new positioning statement,
expect great things, is a commitment to our customers, our
Associates, our business partners and our shareholders. We want
to provide a great shopping experience for our customers, with
the best possible brands, prices and selections in the nation. Our
Associates should expect a work environment that inspires, supports
and rewards them. Our business partners will truly be partners and,
together, we will create the best products in the marketplace.
Finally, we will be prudent stewards of our shareholders’ investment
in the company.
The key to expect great things is our people. We strengthened our
executive team in 2004 by increasing the number of senior level positions
in merchandising, planning and allocation and product development
to help us improve our merchandise content and set Kohl’s apart
from the competition. Some of the positions were filled by outside
hires, while others were filled through internal promotions.
We welcomed over 15,000 new Associates to Kohl’s in 2004. We
are committed to attracting and retaining the best talent in retail.
Our Associates are an outstanding team that did a great job of helping
to restore the attributes that make Kohl’s special to our customers.
We remain committed to managing our business both ethically and
responsibly and to representing the best interest of our shareholders
through good corporate governance. After thorough review by its
Governance and Nominating Committee, the Board of Directors believes
Kohl’s is in full compliance with all applicable corporate governance
rules of the Securities and Exchange Commission (SEC) and the New
York Stock Exchange (NYSE). Accordingly, in 2004, Kohl’s provided
the NYSE with an unqualified Annual CEO Certification of compliance,
and has filed with the SEC, as an exhibit to our Annual Reports on Form
10-K for fiscal years 2003 and 2004, the Sarbanes-Oxley Act Section 302
certification regarding the quality of the company’s public disclosure.
2005 AND BEYOND Our accomplishments in 2004 have set the
stage to deliver a great 2005. We look ahead to 2005 as a year to
return to mid-single digit comparable store sales increases through
the infusion of new, innovative merchandise and marketing
enhancements that revolve around the promise of expect great
things. We will continue our commitment to 20% earnings growth
and to providing brands, value and convenience to our customers.
We’ll use our financial strength to continue our steady expansion
into both new and existing markets and to improve our processes
and productivity.
We want to thank all of our Associates across the country for
helping Kohl’s to get back on track in 2004. We remain
committed to all of our Associates, our customers, our partners,
our shareholders and our communities. We believe our future has
never been brighter. You can expect great things from Kohl’s.
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Kevin Mansell
President
Arlene Meier
Chief Operating Officer
Larry Montgomery
Chairman and
Chief Executive Officer