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

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

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.

UNIT EXPANSION # of Stores 375-380 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 40-45 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 23% 20% 25% 21% 24% 26% 18-19%

SIGNIFICANT EXPANSION OPPORTUNITIES ND 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 1992. 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

SIGNIFICANT EXPANSION OPPORTUNITIES ND 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 1992. 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 1992 - 2000 States 2001 New States

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

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

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

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.

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

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