IS... IS... Family Oriented, Specialty Department StoreFamily Oriented, Specialty Department Store Targeted towards Middle Income CustomersTargeted towards Middle Income Customers Value OrientedValue Oriented Name Brand MerchandiseName Brand Merchandise ConvenienceConvenience

Positioned To Serve Customers Who Shop Department Stores As Well As Discount Stores Customers who want more value Customers Trading Up to Buy Name Brand Department Stores Discounters Kohl’s The Middle Market Customer

STORE GROWTH # of Stores 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%

SALES GROWTH ($ Millions) 26.7% CAGR Comp % Inc. 11.3% 10.0% 7.9% 7.9% 9.0%

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

BRAND NAMES

PRIVATE BRANDS

VALUE 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 CONVENIENCE

MERCHANDISING OBJECTIVES 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