Kohl's 2012 Annual Report Download - page 5

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5
seasons. None of our associates are represented by a collective bargaining unit. We believe our relations with our associates are
very good.
Competition
The retail industry is highly competitive. Management considers style, quality and price to be the most significant
competitive factors in the industry. Merchandise mix, service, customer experience and convenience are also key competitive
factors. Our primary competitors are traditional department stores, upscale mass merchandisers and specialty stores. On-line
only retailers are also becoming an increasing source of competition. 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 us. 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.
Approximately 30% of the merchandise we sell is sourced through a third-party purchasing agent. None of our vendors
individually accounted for more than 5% of our net purchases during 2012. We have no significant 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 annual 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. Revenues and costs associated with the opening of
new stores may also affect our quarterly results.
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 230 additional registered trademarks,
trade names and service marks, most of which are used in our private label program.
Available Information
Our corporate website is www.KohlsCorporation.com. Through the “Investor Relations” 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 &
Nominating Committee
• Report to Shareholders on Social Responsibility
• Corporate Governance Guidelines
• Code of Ethics
Any amendment to or waiver from the provisions of the Code of Ethics that is applicable to our Chief Executive Officer,
Chief Financial Officer or other key finance associates will be disclosed on the “Corporate Governance” portion of the website.
Information contained on our website is not part of this Annual Report on Form 10-K. Paper copies of any of the
materials listed above will be provided without charge to any shareholder submitting a written request to our Investor Relations
Department at N56 W17000 Ridgewood Drive, Menomonee Falls, Wisconsin 53051 or via e-mail to
Investor[email protected].