IS...IS...

• Family Oriented, Family Oriented, Specialty Specialty Department StoreDepartment Store

• Targeted towards Targeted towards Middle Income Middle Income CustomersCustomers

• Value OrientedValue Oriented

• Name Brand Name Brand

MerchandiseMerchandise

• ConvenienceConvenience

Positioned To Serve Customers Who Shop Department Stores As Well As Discount Stores

Customers who

want more value

Customers Trading Upto Buy Name Brand

Department Department StoresStores

DiscountersDiscounters

Kohl’sKohl’sThe Middle Market Customer

(2)

2232

(1)

32

46

61

60

70

(50)

0

50

100

150

200

250

300

350

400

450

500

550

1995 1996 1997 1998 1999 2000 2001 2002E

STORE GROWTHSTORE GROWTH# of Stores

150

182

213

259

320

450

Existing Stores (Opened more than 12 months)

Store Closings

New Store Openings (Opened less than 12 months)

Sq. Ft. Growth 23% 20% 25% 21% 24% 26% 19% 19%

128

22

382

SALES SALES GROWTHGROWTH

$2,388$3,060

$3,682

$4,557

$6,152

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1996 1997 1998 1999 2000

($ Millions)

26.7% CAGR

Comp% Inc. 11.3% 10.0% 7.9% 7.9% 9.0%

CUSTOMERCUSTOMER

Approximately 80% are women 25-54 years of age Married with at least one child at home HH income $35,000 & above

BRAND NAMESBRAND NAMES

PRIVATE BRANDSPRIVATE BRANDS

VALUEVALUE

• Value Equation Price Quality Ease of Purchase

Kohl’s: “That’s MORE Like It” MORE = Value

• MORE Convenience• MORE Brands• MORE of the things you want

• Accessible store locations

• Knowledgeable and friendly Associates

• Customer friendly store layout

• In-stock on color and size

• Central checkout• Shopping

cart/stroller

CONVENIENCECONVENIENCE

MERCHANDISING MERCHANDISING OBJECTIVESOBJECTIVES

Driving Sales Through:

– Assortment Planning

– Vendor Partnerships

Assortment Planning

• Building Key Items– National Name Brands

– Private Label

• Narrow and Deep Merchandise Assortment

• Understanding our Core Customer

• Execution and Adjustments throughout the season

• Effective Marketing to Drive Sales

• Researching who the Customer is

• Knowing what the Customers want

• Bringing this into the Product Lines that we carry in the stores

“Long Walks”

“He’s Happy”

Successful Characteristics

• Independent Thinkers

• Thrive on Responsibility

• Flexible• Leadership Abilities