Kohl's 2010 Annual Report Download - page 4

Table of Contents
exclusive brands which are available “Only at Kohl’s.” New brand launches and announcements in 2010— all of which are exclusive to Kohl’s
—included:
• Jennifer Lopez and Marc Anthony, the first celebrity couple to simultaneously design collections for one retailer, are expected to launch
their new brands in Kohl’s stores nationwide and Kohls.com beginning Fall 2011. Both brands are expected to initially launch in
women’s and men’s apparel and accessories and may expand into home. The Jennifer Lopez collection is expected to include sportswear,
dresses, handbags, jewelry, shoes and sleepwear. Marc Anthony is expected to include sportswear, dress shirts, neckwear, accessories,
suit separates, sportcoats and shoes.
• ELLE Décor, which currently includes contemporary home and home decor products, including decorative pillows, frames, candles and
accent items, launched in approximately 350 stores and Kohls.com in September 2010.
• Aldo Group, International will design and produce exclusive footwear products expected to be sold at Kohl’s and Kohls.com under select
private and exclusive brands beginning in Spring 2011.
• Several new accessories lines:
• FLIRT! Cosmetics teamed with Heather Morris, actress, dancer, singer and star of the hit television show, as their new
Celebrity Style Ambassador in support of the brand’s Spring 2011 product collection. The campaign is expected to launch in
Spring 2011.
• The ELLE BIJOUX jewelry and ELLE-branded line of cosmetics is expected to launch in Spring 2012.
• Simply Vera Vera Wang cosmetics are expected to launch in Spring 2012.
In December 2010, we also announced the early renewal of our long-term license agreement to be the exclusive provider and marketer in the United
States of all Simply Vera Vera Wang merchandise. First licensed in 2006, the Simply Vera Vera Wang contemporary lifestyle collection also
includes all apparel, intimates and sleepwear, handbags, leather accessories, jewelry, footwear, bedding and bath.
The success of our recently-launched brands, as well as our other exclusive and private brands, continue to drive increased penetration of our
exclusive and private labels. Exclusive and private brand sales as a percentage of total sales increased approximately 290 basis points to 48% for
2010.
• Our marketing initiatives are designed to differentiate Kohl’s in the marketplace while maximizing the return on our marketing investment. Our
2010 marketing efforts used “The More You Know, The More You Kohl’s” platform to focus on the value of shopping at Kohl’s. Our marketing
emphasized the power of Kohl’s savings tools that allow our customer to save more money – like compelling sale events, savings for Kohl’s
Charge cardholders, sale events with no exclusions, and unique “Only at Kohl’s” events such as Kohl’s Cash and Power Hours. Our marketing
also emphasized our flexible, no questions asked, return policy.
We used all media types to communicate our marketing message including print advertising, direct mail, e-mail, digital and social media,
Kohls.com, television, radio, in-store and – new for the holiday 2010 season – mobile access to Kohls.com.
• Our inventory management initiatives are designed to ensure that we have the right inventory, in the right stores, at the right time. Size
optimization is focused on ensuring that each of our individual stores has inventory in the correct style, color and size. Markdown optimization is
focused on pricing clearance items at the appropriate price for each location’s inventory and sales history. Increasing our speed-to-market through
our concept-to-customer strategy is also an important inventory management initiative.
• The objective of our in-store shopping experience initiatives are to satisfy the changing needs and expectations of our customers. Practical, easy
shopping is about convenience. At Kohl’s, convenience
4