Kohl's 2002 Annual Report Download - page 10

The most visible part of our growth strategy is our new store openings
and new market entries. Equally important is our focus on keeping
our established stores looking fresh and current. This is accomplished
through both our remodeling program and enhanced fixture and
graphic presentations throughout our stores. This strategy strengthens
customer relationships, as reflected in our consistently solid increases
in comparable store sales.
Focus on remodeling
Historically, our selection of stores to be remodeled each year was
simply focused on the age of our stores, with a goal of updating each
store every seven or eight years. When a store was remodeled, it was
updated with all of the latest fixture presentations used in our newly
built stores. Because we continually add stores in the major markets
that we serve, this approach resulted in stores of varying ages and
with different presentation packages within a market. To ensure
consistency in the Kohl’s shopping experience, we decided that we
needed to modify the strategy for our remodeling program.
Our first test of a new concept was in the Columbus, Ohio, market.
We evaluated the entire market as a whole, and then store by store.
We looked at opportunities to add new stores and evaluated the size
and current location of each existing store to determine how we
could best serve our customers. Upon completion, we celebrated all
of the remodels and expansions in the entire market with a grand
reopening in the fall of 2001.
In 2002, we improved on this concept and followed the same process
in evaluating the Milwaukee market. We remodeled 11 stores, including
three store expansions, and opened five new locations. In addition
to updating the interiors of the remodeled stores, in many cases we
also updated the exteriors. The grand reopening of the market in
October 2002 had all of the promotional elements and excitement
of a new market entry. Extensive print, radio, television and direct
mail advertising encouraged customers to “check out the new face
of an old friend.”
Our experience with the Columbus and Milwaukee markets provides
valuable insights as we continue to refine our remodeling program.
We believe this strategy has excellent potential to increase awareness
and excitement in our established markets. We have identified the markets
that will undergo remodeling and grand reopenings each year and will
continue our focus on keeping all of our markets updated and current.
Evolving presentations
Bringing freshness and excitement to our stores is not totally dependent
upon our remodeling program. We bring newness into all of our stores
through continually evolving fixture and graphic presentation packages.
Concepts tested in new stores that enhance presentation and capacity
are rolled out to all stores, if they can be accomplished without
remodeling the existing store. For example, new fixtures were rolled out
to all stores in 2002 to improve the attractiveness, presentation and
shopability of our misses apparel.
Our Get It! and table & tower presentations are powerful merchandising
tools that change with the season and with our customer’s needs.
These programs are consistent across all of our stores, although specific
merchandise assortments can vary by region. Maintaining consistency
in the Kohl’s brand across our entire store base builds customer loyalty
by meeting our customer’s expectations and creating excitement in
whatever location she chooses to shop.
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Milwaukee grand reopening
events included shopping
sprees and a grand prize
vacation getaway.