Kohl's 2014 Annual Report Download - page 4

Table of Contents
The charts below summarize the percentage of our sales which were national brands and those which were private and exclusive brands over the last
three years.
We frequently add new products, brands and categories in order to maintain freshness in our inventory assortment and drive customer traffic to our
stores and website. In 2014, we launched the Fitbit, IZOD, Juicy Couture, Gaiam, Nespresso and PUMA brands as well as various Jumping Beans collections
featuring Disney characters.
Another example of new products that customers can find in many of our stores and on-line is our new beauty departments which offer brands which
were not previously available at Kohl’s. We expect to further expand our beauty offerings in 2015 when we launch Bliss beauty and apparel products. As of
year-end, approximately half of our stores have newly-renovated beauty departments. We expect to have the new beauty department in approximately 900
stores by the end of 2015.
The goal of incredible savings is to help every customer get more from every dollar. For many years, we have offered special discounts during our Kohl's
Cash promotions and for being a Kohl's-branded private label credit card holder. In 2014, we launched a nationwide loyalty program called Yes2You
rewards. Customers who enroll earn rewards based on the dollar amount of purchases that they make. As of year-end 2014, approximately 25 million
customers had enrolled.
We're able to offer incredible savings to our customers because of our ongoing commitment to a lean operating model. Critical elements of this low-cost
structure are our unique store format; lean staffing levels; sophisticated systems which enhance productivity and support personalization, predictive analytics
and real-time savings offers; and operating efficiencies which are the result of centralized buying, advertising and distribution.
We are also making significant investments to create an easy experience for our customers wherever or however they choose to engage with us. Whether
they are shopping in one of our stores, from their mobile devices or from their laptops, we are creating a consistent experience to ensure that our customers
can connect with us wherever and however they wish. In 2014, we focused on improving the tablet and smart phone shopping experience and tested buy on-
line and pick up in store in approximately 100 stores. We expect to offer this shopping option in all of our stores by the second quarter of 2015.
Personalized connections is about building lasting relationships with our customers. To build personalized connections during the shopping
experience, we are focused on localizing and tailoring what we sell and how we communicate our product. This ensures that our products and offers are
personally relevant to each and every customer. At the same time, personalized connections is about contributing to causes such as children's health and
education or the environment, so our customers know we are sensitive to the issues that are important to them.
The final pillar is winning teams, which focuses on building teams of engaged, talented, empowered and results-oriented management and employees.
For discussion of our financial results, see Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations."
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We receive substantially all of our store merchandise at our nine retail distribution centers. A small amount of our merchandise is delivered directly to
the stores by vendors or their distributors. The retail distribution centers, which are strategically located throughout the United Sates, ship merchandise to
each store by contract carrier several times a week. On-line sales are shipped from four Kohl's fulfillment centers, from third-party fulfillment centers, from our
retail distribution centers, directly by third-party vendors, and from a majority of our stores. We expect to have ship-from-store capabilities in all of our stores
by the end of 2015.
See Item 2, “Properties,” for additional information about our distribution centers.
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