Kohl's 2008 Annual Report Download - page 6

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Competition
The retail industry is highly competitive. Management considers quality, value, merchandise mix, service
and convenience to be the most significant competitive factors in the industry. Our primary competitors are
traditional department stores, upscale mass merchandisers and specialty stores. Our specific competitors vary
from market to market.
Merchandise Vendors
We purchase merchandise from numerous domestic and foreign suppliers. We have Terms of Engagement
requirements which set forth the basic minimum requirements all business partners must meet in order to do
business with Kohl’s. Our Terms of Engagement include provisions regarding laws and regulations, employment
practices, ethical standards, environmental and legal requirements, communication, monitoring/compliance,
record keeping, subcontracting and corrective action. Our expectation is that all business partners will comply
with these Terms of Engagement and quickly remediate any deficiencies, if noted, in order to maintain our
business relationship.
None of our suppliers accounted for more than 5% of our net purchases during 2008. We have no long-term
purchase commitments or arrangements with any of our suppliers, and believe that we are not dependent on any
one supplier. We believe we have good working relationships with our suppliers.
Seasonality
Our business, like that of most retailers, is subject to seasonal influences. The majority of our sales and
income are typically realized during the second half of each fiscal year. The back-to-school season extends from
August through September and represents approximately 15% of our annual sales. Approximately 30% of our
sales occur during the holiday season in the months of November and December. Because of the seasonality of
our business, results for any quarter are not necessarily indicative of the results that may be achieved for the
fiscal year. In addition, quarterly results of operations depend significantly upon the timing and amount of
revenues and costs associated with the opening of new stores.
Trademarks and Service Marks
The name “Kohl’s” is a registered service mark of one of our wholly-owned subsidiaries. We consider this
mark and the accompanying name recognition to be valuable to our business. This subsidiary has over 100
additional registered trademarks, trade names and service marks, most of which are used in our private label
program.
Available Information
Our internet website is www.Kohls.com. Through the “Investor Relations-SEC Filings” portion of this
website, we make available, free of charge, our proxy statements, Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K, SEC Forms 3, 4 and 5 and any amendments to those
reports as soon as reasonably practicable after such material has been filed with, or furnished to, the Securities
and Exchange Commission (“SEC”).
The following have also been posted on our website, under the caption “Investor Relations-Corporate
Governance:”
• Committee charters of our Board of Directors’ Audit Committee, Compensation Committee and
Governance and Nominating Committee
• Report to Shareholders on Social Responsibility
• Corporate Governance Guidelines
• Code of Ethics
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