Company Presentation
By: Hannah Gregory
BUSI 1200 Section 603

 Kohl’s was founded in 1962 by Max Kohl as a supermarket chain that eventually expanded into general retail
 Kohl’s settled into a niche between high-end department stores and discount sellers
 Sales hit $1 billion in 1992 and Kohl’s achieved a nationwide presence by 2006 with 817 stores in 47 states
 Kohl’s has won several National Corporate Awards and
Corporate Social Responsibility Awards

“To be the leading family-focused, value-oriented specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly and exciting.”

Industry
Department Store type
Retailers specializing in:
 Apparel
 Home Goods
 Shoes and Accessories
 National as well as exclusive and value brands
Competitors
Department Stores:
 JC Penny
 Sears
Discount Retailers:
 Marshall’s
 TJ Maxx

 Customer loyalty secured with pricing, sales and credit card program
 Strategic Action Committees working to ensure merchandise is relevant and inventory is consistent
 Merchandise Mix
 Availability of both National and Private/Exclusive
Brands

 High employee turnover
 In-store pricing inconveniences
 Inadequate employee training program
 Payroll cap that often causes shortage of employees during a given shift

 Free-standing buildings allowing more flexibility with sales and promotions and gives an edge over competitors located in malls
 Environmental Endeavors
 Electronic signage
 Use of recycled products
 New store plans to promote long-term sustainability

 Sales and pricing of other department stores
 Discount retailers offering similar products at lower prices

 “No-exclusion” sales events
 No hassle return policy
 Credit card program
 “Kohl’s Cash” program

 Potential leader in Green Initiatives and sustainability efforts
 Remain the “go-to” destination for sale shoppers
 Continued growth in sales and income

 Kohl’s major weakness: high employee turnover
 Causes of high turnover:
 Inadequate training program
 Payroll caps
 Lure of competitors offering lower stress or higher pay

 Revamp employee training program to ensure that all employees are trained adequately, especially in frontend jobs (cashiers, customer service)
 Raise payroll caps enough to allow more employees on the floor to assist customers and keep the store functional
 Commission HR departments to find ways to improve employee benefits or offer initiatives to encourage loyalty

Kohl’s is a highly successful retailer that has done well in their specific niche. With their excellent marketing and various loyalty programs, Kohl’s has no problem attracting and keeping customers. However, Kohl’s seems unable to consistently keep employees. With a few changes, an enhanced human resources department, and a re-tooled training program, Kohl’s can inspire employee loyalty which will improve customer relations, profits, and overall company success.

 www.kohlscorporation.com
 Retailindustry.about.com