Kohl's is a major department store chain founded in 1927 that has grown to over 1100 stores across the US. It offers apparel, home goods, and other general merchandise. Over the past 5 years, Kohl's sales have been consistent around $20 billion annually while profits have fluctuated between $556-867 million. The stock price has trended down over the past year and is weaker than 90% of the NYSE market. Challenges to growth include the decline in department stores and lack of strong brand perception, while consistent promotions have helped sales.

1. LEGACY RETAILER REINVENTION
Julia Young, Yasemin Pistar, Shayna Salzman, Isabel Wild
FASM 410, Mary Alonso, Fall 2019

2. HISTORY
Maxwell Kohl, a Polish immigrant, founded Kohl’s as a grocery
store in Milwaukee, Wisconsin in 1927. Due to its success it grew
to its first department store in 1962 in Brookefield, Wisconsin.
Today, Kohl’s is the third largest department store chain in the US,
offering a general line of apparel, home furnishings, household
appliances, and housewares.

3. MISSION
“Kohl’s Associates live out our values each and every day”
Kohl’s puts customers first and take a “yes we can” approach
to everything they do. They support the community and
causes, act with integrity, treat others with respect, and make
decisions that support the reputation of the organization.

4. SALES AND PROFIT TRENDS
IN THE LAST 5 YEARS
2019 2018 2017 2016 2015
Sales (B) 20.2 20.1 18.7 19.2 19
Net Profit (M) 801 859 556 673 867

5. STOCK TRENDS
IN THE LAST 5 YEARS
High Price Low Price
2019 79.52 42.77
2018 78.7 34.97
2017 52.72 31.88
2016 44 28.93
2015 65.6 40.74

6. REASONS FOR SALES AND PROFIT TRENDS
Past Quarter: In the last three months the stock has hit a new 52-week low five
times, pointing to a downtrend.
Relative Strength (6 months): The stock has a 6-month relative strength of 10 in
the NYSE market indicating it is trailing 90% of the market
Growth is consistent but slow due to the decline in popularity of department
stores, as well as lack of brand perception and customer loyalty to Kohl’s. Sales
are probably due to constant promotions and discounts advertised.
The stock is trending down in strength compared to the majority of the market.
“Stock Review, Stock Review: Kohl’s increases.” News Bites Stock Review, September 20, 2019. https://0-advance-lexis-com.library.scad.edu/api/
document?collection=company-financial&id=urn:contentItem:5PNY-SMK1-DY42-813H-00000-00&context=1516831. Accessed September 22, 2019.

7. SALES BY CHANNEL
Brick and Mortar eCommerce

8. Name: Deborah Smith
Age: 45
Location: Chandler, Arizona
Education: BA Education Biology/Chemistry, MA Curriculum and Instruction from ASU
Occupation: High school chemistry teacher
Income: $53,000
VALS: Beliver
Household: Married to her husband, John, and has as 17 year old son and a 15 year old
daughter.
Deborah teaches high school honors and AP chemistry, spending her time during the week
grading and helping students after school. On the weekends she attends her son’s soccer
games and her daughter’s swim meets with her husband. She also runs errands and cleans
the house. In the evening she spends time with her family or girlfriends by going out to
dinner.
PERSONA

9. Name: David Wilson
Age: 61
Location: Jacksonville, Florida
Education: University of Florida
Occupation: Engineer
Income: $101,000
VALS: Achiever
Household: Divorced with a 21 year old daughter in college. Is in a new relationship with a 48
year old named, Lisa.
David works as an electrial enginner and has been at the same company for most of his
career. He divorced from his wife almost ten years ago and took care of his daughter during
the weekends. He recently got into a new relationship with a woman named Lisa, who is also
a divorcee with two kids. He’s very tech savy and also frugal. On the weekends he enjoys
watching football at the bar with his friends and playing golf.
PERSONA

10. Exclusivity
Price
PERCEPTUAL MAPIndicates top competitor

11. STORE CATEGORIES AND PRICE RANGE

12. COMPANY PROFILE
Target Customer
- 30 years and older
- Married people who make a medium level income
- Families who have kids so they can shop together as a family
Competitive Advantage
- Now accept Amazon returns at their customer service window
- Family shopping atmosphere
-Carry a vast variety of brands
- Constantly have sales and discounts on all of their products
- Have touch screen throughout the store to look up things online
- Implement customer loyalty programs
- Kohls cash
- Kohls credit card
- Numerous hiring and saving opportunities

13. STORE CATEGORIES AND PRICE RANGE

14. Target Customer
- 35-54 year old female
- Middle to upper level income who works outside of her home
- Style conscious and seeks updates fashion looks
Competitive Advantage
- Have a strong portfolio of private label brands
- Aggressive Market Strategies
- Does not rely on conventional advertising
- Focuses more on web based strategies
- Has rewards cards for loyal customers
- Multi-Channel Sales
- Follows omni channel strategy for in-store, online and mobile shopping
- Transparency compliance
- National Partnership with Salvation Army and Boys and Girls Club
- Project hometown was created to help rebuild communities
COMPETITOR PROFILE

15. STORE CATEGORIES AND PRICE RANGE

16. Target Customer
- 25-34 years old
- 60-63% female
Competitive Advantage
- Multi Channel Sales
- Inventory Turnover Ratio
- They manage inventory levels efficiently
- Revenue Growth
- Have redesigned the interior of their store
- Good brand reputation
- New immersive shopping experience
- Good Merchandising Practices
- Easy to recognize staff
- Eye catching visual merchandising and displays
- Adding in dozens of their own brands
- Reduced Costs
COMPETITOR PROFILE

17. STORE CATEGORIES AND PRICE RANGE

18. Target Customer
- Female
- 25-54 years old
- Middle to Upper class women with families
- Fashion and value conscious
- Shops at a range of different stores both in-store and online
Competitive Advantage
- More Brick and mortar store space
- Reduced prices
- Low operating costs
- Does not spend a lot of money on store fixtures
- Off-pricing store network
- Vast vendor network of 20,000 vendors
- Global sourcing and strong inventory management
- Financial performance
- Part of the off-price retail chain
COMPETITOR PROFILE

19. STORE CATEGORIES AND PRICE RANGE

20. Target Customer
- Millennials ages 16-34
- Well informed and closely follow their brands
- Prefer good quality produces with reasonable prices
Competitive Advantage
- Support Services
- Credit Processing
- Customer service
- Credit Marketing
- Multi Sales Channels
- Direct-to-customer business
- Increases brand awareness
- Creates ease in funding the company
- Liquidity Position
- Buy Online Pickup in Store, Buy Online Ship to Store and At Your Service counters, as well
as mobile checkout
- For the Future: This includes virtual reality technology in furniture, Macy’s Style Crew and
The Market @ Macy’s
COMPETITOR PROFILE

21. STORE CATEGORIES AND PRICE RANGE

22. Target Customer
- Ages 16-34
- Millennials who are well informed about about products and bring good sales to the
online platform
Competitive Advantage
- Integrated multi channel retailing platform
- Caters to increasing base of price sensitive customers
- Opened Nordstrom rack
- Revenue growth
- Provides various different services
- Spa
- Tailoring and Altering
- Restaurants
- Reserve online, try on in stores
COMPETITOR

23. STRATEGIES

24. REBRANDING

25. TIMELINE - REBRANDING

26. LOGO UPDATE
Old Logo New Logo

27. WEBSITE UPDATE
Old Website New Website

28. CATALOG UPDATE
Old Catalog New Catalog

29. INSTAGRAM UPDATE
Old Instagram New Instagram

30. WINDOW DISPLAY

31. INTERIOR UPDATE
Old Interior New Interior

32. CONSIDERATIONSANDCHALLENGES
Corporate culture: Shift in perspective; some long time
employees may resist change.
Human and capital resourcing: Bringing in new and
savvy people to help rebrand and rebuild the business with
a fresh perspective and ideas. Re-training the people in
charge of merchandising the store and knowing about the
product.
Marketing: Launch of new logo, website and social media,
how to create a buzz around it.
Merchandising: Change store merchandising to better
fit the new look, more sleek and designed, less focused on
promotions and more focused on product.
Systems: Updated website and IT design.

33. DRESSING ROOM EXPERIENCE

34. TIMELINE - DRESSING ROOM EXPERIENCE

35. DRESSING ROOM FLOOR PLAN

36. DRESSING ROOM MOCKUP

37. DRESSING ROOM PROMOTION

38. Corporate culture: Updated ideas and systems, everyone
has to be on board with a significant change to how
shopping is going to happen.
Human and capital resourcing: Training for the
technology installed in fitting rooms.
Marketing: Which outlets would be best to announce
launch, social media, traditional or integrated marketing.
Maybe a grand re-opening event.
Merchandising: More centered around fitting rooms and
stocking them with key accessories to compliment the
outfits being tried on.
Systems: Smart mirrors and shelves, maybe kiosks to
purchase items from fitting room.
CONSIDERATIONSANDCHALLENGES

39. Name: Casey Williams
Age: 25
Location: Philadelphia, Pennsylvania
Education: University of Maryland
Occupation: Entry Level Marketer
Income: $40,000
VALS: Striver
Household: Lives with a friend, Marissa, from college in a tiny apartment; 2 bedroom, 1 bath
Casey was recently hired at a marketing firm after graduating with a BFA in Marketing at a
company she interned for previously. Her and her friend, Marissa, both decided to move to
Philly together and share an apartment with their dog, Charlie. Casey enjoys checking out
the hot local resturants and hanging out at hip bars. She also enjoys reading and going to
Orange Theory.
NEW PERSONA

40. Exclusivity Exclusivity
Price Price
PERCEPTUAL MAPS
Old Perceptual Map New Perceptual Map

41. SOURCES
https://corporate.kohls.com/news/archive-/2019/march/kohl-s-corporation-reports-financial-results
https://www.sec.gov/Archives/edgar/data/1051771/000095014406003495/g00773e10vk.htm
https://www.pymnts.com/news/retail/2016/average-target-shopper-customer-demographics/
https://articles2.marketrealist.com/2015/02/macys-target-consumers-make-difference/
https://ecommercedb.com/en/store/kohls.com
“Stock Review, Stock Review: Kohl’s increases.” News Bites Stock Review, September 20, 2019.
https://0-advance-lexis-com.library.scad.edu/api/document?collection=company-financial&id=urn:co
ntentItem:5PNY-SMK1-DY42-813H-00000-00&context=1516831. Accessed September 22, 2019.
https://www.thebalancesmb.com/top-global-department-store-2892860
https://www.abc15.com/news/data/teacher-salaries-in-arizona-see-how-much-each-district-pays-their-teachers
http://corporate.kohls.com/investors/financial-information
https://www.nasdaq.com/market-activity/stocks/kss