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PROVEN AND UNIQUE STORE CONCEPT

PROVEN AND UNIQUE STORE CONCEPT. Value, Name Brands and Convenience. Positioned To Serve Customers Who Shop Department Stores As Well As Discount Stores. Department Stores. THE MIDDLE MARKET CONSUMER. Customers Wanting More Value. Customers Trading Up to Buy Name Brand. Discounters.

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PROVEN AND UNIQUE STORE CONCEPT

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  1. PROVEN AND UNIQUE STORE CONCEPT Value, Name Brands and Convenience

  2. Positioned To Serve Customers Who Shop Department Stores As Well As Discount Stores • Department Stores • THE MIDDLE MARKET CONSUMER • Customers Wanting More Value • Customers Trading Up to Buy Name Brand • Discounters

  3. OUR CORE CUSTOMER

  4. Existing Stores (Opened more than 12 months) New Store Openings (Opened less than 12 months) Store Closings UNIT EXPANSION # of Stores 375-380 320 259 213 182 150 128 22 Sq. Ft. Growth 23% 20% 25% 21% 24% 26% 18-19%

  5. 2000 EXPANSION ND MN 1 NY 16 WI 1 SD MI 2 CT - 8 PA 3 NE IA NJ - 11 OH IL 3 IN DE MD - 1 CO 4 WV VA MO 2 KS KY NC 1 TN OK 3 TX 5 New Markets/States Fill-in States Existing States

  6. SIGNIFICANT EXPANSION OPPORTUNITIES ND MN NY WI SD MI CT PA IA NE NJ IN OH DE WV CO IL MD KS MO VA KY NC TN OK AK GA TX 1992 - 2000 States 2001 New States

  7. EFFECTIVE MARKETING • Newspaper inserts • Over 17.0 million fullcolor inserts weekly • Broadcast • Credit card

  8. COMP STORES SALES vs.NATIONAL RETAILERS AUGUST YTD (%) Kohl’s vs. Direct Competitors Kohl’s vs. High Growth Retailers

  9. AVERAGE COMP STORE SALES GROWTH (%) 1995 - 1999 Kohl’s vs. Direct Competitors Kohl’s vs. High Growth Retailers

  10. Leveraging Technology • E-commerce • Capitalize on Kohl’s brand awareness in the marketplace. • Integrate sales and customer service with existing store locations. • Building an infrastructure to support web site updates, fulfillment, and customer service. • Business Systems • Internally built systems that allows us to analyze sales, merchandise placement and flow of goods to stores. • Continue to build new systems that give us a technological edge on competition.

  11. Merchandise Analyst • Store Inventory Manager • Comp, Non-Comp and New Stores • Trending Stores/Markets • Maximize productivity while ensuring in-stocks • Average Analyst Manages: • $100.0 million in inventory • 3,500 Items • 300 + Stores

  12. Areas of outside interaction - Future Careers? • Merchant Team • Stores • Logistics/Distribution Centers • Vendors • Micro Markets • E-Commerce • Customer • MIO

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