Kohl's 2009 Annual Report Download - page 3

Table of Contents
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Kohl’s Corporation (the “Company” or “Kohl’s”) was organized in 1988 and is a Wisconsin corporation. We operate family-oriented department stores
that sell moderately priced apparel, footwear and accessories for women, men and children; soft home products such as sheets and pillows; and housewares.
Our stores generally carry a consistent merchandise assortment with some differences attributable to regional preferences. Our stores feature quality private and
exclusive brands which are found “Only at Kohl’s” as well as national brands. Our apparel and home fashions appeal to classic, modern classic and
contemporary customers. As of January 30, 2010, we operated 1,058 stores in 49 states.
As reflected in the table below, our merchandise mix has been consistent over the last three years:
  
Women’s  32% 33%
Men’s  19 19
Home  18 18
Children’s  13 13
Accessories  10 9
Footwear  8 8
In addition, Kohl’s offers on-line shopping on our website at www.Kohls.com. Designed as an added service for customers who prefer to shop using the
internet, the website has grown to include a selection of items and categories beyond what is available in stores, with a primary focus on extended sizes,
product line extensions, and web-exclusive product lines. The website is designed to provide a convenient, easy-to-navigate, on-line shopping environment that
complements our in-store focus.
An important aspect of our pricing strategy and overall profitability is a culture focused on maintaining a low-cost structure. Critical elements of this
low-cost structure are our unique store format, lean staffing levels, sophisticated management information systems and operating efficiencies which are the
result of centralized buying, advertising and distribution.
Our fiscal year ends on the Saturday closest to January 31. Unless otherwise noted, references to years in this report relate to fiscal years, rather than to
calendar years. Fiscal year 2009 (“2009”) ended on January 30, 2010. Fiscal year 2008 (“2008”) ended on January 31, 2009. Fiscal year 2007 (“2007”) ended
on February 2, 2008. Fiscal 2009, 2008 and 2007 were 52-week years.
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We have two strategic committees which focus on opportunities to drive our overall profitability. The mission of the Regional Assortment Committee is to
accelerate sales growth by varying merchandise assortment, marketing and store presentation by region to reflect the lifestyle preferences and climate needs of
our customers. The mission of the In-Store Experience Committee is to consistently deliver an improved store experience that generates loyalty and grows
market share.
The following initiatives have been designed to achieve the goals of the strategic committees:
• Our merchandise content initiatives are focused on increasing market share by expanding Kohl’s appeal to a broader range of customers and by
creating value and differentiation with private and exclusive brands which are available “Only at Kohl’s.” New brand launches in 2009 included:
• Dana Buchman – a classic lifestyle brand, spanning several categories including women’s apparel, intimate apparel, accessories, and
footwear, launched in February 2009. Ultimately, the brand may be extended into home, beauty and fragrance categories.
• Hang Ten – a California lifestyle collection for young shoppers launched in Spring 2009.
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