Kohl's 2014 Annual Report Download - page 5

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Table of Contents

As of January 31, 2015, we employed approximately 137,000 associates, including approximately 32,000 full-time and 105,000 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.

The retail industry is highly competitive. Management considers style, quality and price to be the most significant competitive factors in the industry.
Merchandise mix, brands, service, customer experience and convenience are also key competitive factors. Our primary competitors are traditional department
stores, upscale mass merchandisers, off-price retailers, specialty stores, internet and catalog businesses and other forms of retail commerce. Our specific
competitors vary from market to market.

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 2014. 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.

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.

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 180 additional registered trademarks, trade names and service marks, most of which are
used in connection with our private label program.

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.
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