Kohl's 2001 Annual Report Download - page 5

When we took the company public in 1992, we had
76 stores in six states. In our IPO prospectus,
we described our plans for growth by saying:
This is exactly what we have executed over the past ten
years. Since our initial public offering, we have opened
344 new stores consisting of 256 new builds and 88
take-over locations, bringing us to a current total of
420 stores in 32 states. We have successfully entered major
new markets by building new stores in Atlanta, Charlotte,
Cleveland, Denver, Dallas, Houston, Pittsburgh and
Washington D.C. We have also converted stores
previously operated by regional discounters in Boston,
Philadelphia, St. Louis and the New York region.
Kohl’s expansion strategy is designed to achieve consistent,
controlled growth by moving into contiguous states
and adding fill-in stores in existing
markets. Our goal today is the
same as it was ten years ago – to
increase square footage by
approximately 20% per year.
Solid Infrastructure
The elements that made Kohl’s so
successful in the Midwest have
been replicated in each geographic
region. Each region has the support
of a major distribution center and a regional management
team. Our central merchandise support group tailors
merchandise assortments to reflect regional climates and
preferences. Our strong company culture and established
operating disciplines are the core of the infrastructure
we bring to each new market.
We opened 62 new stores in 2001, 30 in new markets
and 32 in existing markets. We plan to open 70 stores
in 2002, 38 in new markets and 32 in existing markets.
An additional 80 stores are planned for 2003. We also
continually upgrade our established stores to keep them
fresh and current. Stores are remodeled every seven to nine
years, and many are expanded in size at the same time.
Successful Expansion Strategy
Kohl’s stores are located in the growing suburban areas
of large metropolitan markets, close to where our customers
live and work. We also target smaller satellite towns where
we can generate significant market share with one or
two stores. Our focus continues to be on free-standing
locations or power strip malls that provide visibility,
parking and easy access. All new markets are supported
with strong, brand-building print, radio and TV spots.
Our strong financial performance and growth in market
share illustrate the success of this strategy.
Foundation for Growth
The Kohl’s approach to expansion is consistent and
focused. Although we’ve refined the process, the strategy
for growth we communicated when we went public in
1992 continues to be the formula for our successful
expansion into new regions and new markets in the future.
Ko hl’s expanded its presenc e in Texas with the
o pe ning of 12 sto res in Ho usto n in March 2002.
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