Kohl's 2009 Annual Report Download - page 6

Table of Contents
which are strategically located through the United Sates, ship merchandise to each store by contract carrier several times a week. We also operate a 940,000
square foot fulfillment center in Monroe, Ohio that services our e-commerce business. Additionally, we plan to open a 970,000 square foot e-commerce
fulfillment center in San Bernardino, California in June 2010 to provide increased capacity to support our growing e-commerce business.
See Item 2, “Properties,” for additional information about our distribution centers.
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As of January 30, 2010, we employed approximately 133,000 associates, including approximately 29,000 full-time and 104,000 part-time associates.
The number of associates varies during the year, peaking during the back-to-school and holiday seasons. None of our associates are represented by a collective
bargaining unit. We believe our relations with our associates are very good.
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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.
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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 vendors accounted for more than 5% of our net purchases during 2009. 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.
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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
upon the timing and amount of revenues and costs associated with the opening of new stores.
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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 125 additional registered trademarks, trade names and service marks, most of which are
used in our private label program.
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