1. PROVEN AND UNIQUE STORE CONCEPT
Value, Name Brands and Convenience
PROVEN AND UNIQUE STORE CONCEPT
WE ARE A VALUE ORIENTED SPECIALTY DEPARTMENT STORE
WE SELL MODERATELY PRICED, NATIONAL BRAND APPAREL, SHOES AND HOME PRODUCTS
CONVENIENCE
EASILY ACCEESSIBLE LOCATIONS
WELL LAID OUT STORES
GOOD IN-STOCK POSITION
GET IN/GET OUT QUICKLY

2. Positioned To Serve Customers Who Shop Department Stores As Well As Discount Stores
Customers Wanting More Value
THE MIDDLE MARKET CONSUMER
Kohl’s Strategic Position
Kohl’s has positioned itself strategically within the retail industry.
Customers that typically shop at Traditional Department Stores come to Kohl’s because they want more overall value; same merchandise, better price.
Customers that typically shop at Discount Retailers shop at Kohl’s because they want to trade up and buy name brand merchandise at a comparable price.
Customers Trading Up to Buy Name Brand
Discounters

3. OUR CORE CUSTOMER Target Customer
Thanks to several demographic factors, our target customer base remains large
The combined family income levels range between $35,000 and $100,000.
We are targeting families with children shopping for themselves and their home. This includes people from 25 to 65 years of age.
With more than 705 of women in this age group working today, our customer is increasingly starved for time. This is forcing women to look for shopping to be easy and fast.
Kohl’s caters to this segment by our merchandise offering, our pricing and our easy to shop stores.

4. UNIT EXPANSION # of Stores
Existing Stores (Opened more than 12 months)
Store Closings
New Store Openings (Opened less than 12 months)
320
259
213
182
150
128
UNIT EXPANSION 22
THIS CHART SHOWS YOU HOW WE HAVE GROWN SINCE 1992.
BASED ON THE STORES COMING INTO THIS YEAR, WE WILL HAVE OPENED 137 STORES WHILE CLOSING 3 STORES SINCE WE TOOK THE COMPANY PUBLIC IN 1992
WILL OPEN ADDITIONAL STORES IN 1999
50-55 NEW STORES IN 2000, AS 33 FORMER CALDOR STORES ARE OPENED.
FILL-INS, CONTIGUOUS MARKETS AND NEW MARKETS
GOING FORWARD, WE CONTINUE TO EXPECT TO GROW SQUARE FOOTAGE 15-20% PER YEAR
Sq. Ft. Growth % % % % % % %

5. SIGNIFICANT EXPANSION OPPORTUNITIESND MN 1 SD WI 1 NY 16 MI 2
CT - 8 PA 3 NE IA
NJ - 11 IL 3 OH IN DE CO 4 WV
MD - 1 VA KS MO 2 KY
SIGNIFICANT EXPANSION OPPORTUNITIES NC 1 TN
THIS SLIDE RECAPS THE GROWTH OVER THE LAST 7 YEARS
IN YELLOW ARE THE STATES WE WERE DOING BUSINESS IN WHEN WE WENT PUBLIC IN AT THAT TIME, WE WERE OPERATING 76 STORES IN 6 STATES
IN BLUE ARE THE STATES WE HAVE SINCE EXPANDED INTO. WE’RE NOW OPERATING 213 STORES IN 22 STATES
THE CONCEPT HAS BEEN VERY WELL RECEIVED AND IT GIVES US THE CONFIDENCE THAT WE CAN CONTINUE TO EXPORT THIS CONCEPT TO NEW MARKETS OK 3 TX 5
New Markets/States
Fill-in States
Existing States

6. SIGNIFICANT EXPANSION OPPORTUNITIESND MN NY SD WI MI CT IA PA NE NJ IN OH DE CO IL WV MD KS MO VA KY
SIGNIFICANT EXPANSION OPPORTUNITIES NC TN
THIS SLIDE RECAPS THE GROWTH OVER THE LAST 7 YEARS
IN YELLOW ARE THE STATES WE WERE DOING BUSINESS IN WHEN WE WENT PUBLIC IN AT THAT TIME, WE WERE OPERATING 76 STORES IN 6 STATES
IN BLUE ARE THE STATES WE HAVE SINCE EXPANDED INTO. WE’RE NOW OPERATING 213 STORES IN 22 STATES
THE CONCEPT HAS BEEN VERY WELL RECEIVED AND IT GIVES US THE CONFIDENCE THAT WE CAN CONTINUE TO EXPORT THIS CONCEPT TO NEW MARKETS OK AK GA TX
States
2001 New States

7. EFFECTIVE MARKETING Newspaper inserts Broadcast Credit card
Over 17.0 million full color inserts weekly
Broadcast
Credit card
EFFECTIVE MARKETING
INSERTS CONTINUE TO BE THE MAJOR VEHICLE FOR US TO COMMUNICATE WITH OUR CUSTOMER
WITH THE OPENING OF OUR TRI-STATE AREA,WE WILL SEND OUT OVER 17 MILLION SUNDAY INSERTS WEEKLY
MAIL MAJOR EVENTS TO OUR OWN CREDIT FILE OF 3.5 MILLION ACTIVE HOLDERS
VEHICLE EMPHASIS ON THE VALUE PART OF THE BRAND, VALUE CONVENIENCE EQUATION
BROADCAST IS ANOTHER POWERFUL VEHICLE TO REACH OUR CUSTOMER
SUPPORT EVERY MAJOR EVENT WITH TV AND RADIO
RADIO VERY IMPORTANT IN LONG DRIVE TIME MARKETS LIKE CHICAGO AND WASHINGTON, D.C.
GROWING IMPORTANCE AS WE DELIVER OUR MESSAGE IN NEW MARKETS
EMPHASIZING ALL THREE ELEMENTS EQUALLY TO PRESENT THE STORE AND MOVE STORE MATURATION MORE QUICKLY

8. COMP STORES SALES vs.NATIONAL RETAILERS AUGUST YTD
(%)
Kohl’s vs. Direct Competitors
AVERAGE COMP STORE SALES GROWTH
Kohl’s vs. High Growth Retailers
WHEN LOOKING AT HIGH GROWTH RETAILERS, IT IS CLEAR THAT COMPARABLE SALES GROWTH IS A KEY FACTOR
IN THIS SLIDE, WE HAVE TAKEN THE COMPARABLE STORES SALES GROWTH FIGURES FROM THE LAST FIVE YEARS AND AVERAGED THEM AGAINST OTHER HIGH-GROWTH RETAILERS
AS YOU CAN SEE, KOHL’S IS SUBSTANTIALLY AHEAD OF THE PACK

9. AVERAGE COMP STORE SALES GROWTH 1995 - 1999
(%)
Kohl’s vs. Direct Competitors
AVERAGE COMP STORE SALES GROWTH
WHEN LOOKING AT HIGH GROWTH RETAILERS, IT IS CLEAR THAT COMPARABLE SALES GROWTH IS A KEY FACTOR
IN THIS SLIDE, WE HAVE TAKEN THE COMPARABLE STORES SALES GROWTH FIGURES FROM THE LAST FIVE YEARS AND AVERAGED THEM AGAINST OTHER HIGH-GROWTH RETAILERS
AS YOU CAN SEE, KOHL’S IS SUBSTANTIALLY AHEAD OF THE PACK
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