Kohl's 2002 Annual Report Download - page 6

Brands, value and convenience
Our success in both new and existing markets is due to our continued
focus on brands, value and convenience. We understand that our key
customer is a busy mom shopping for her home and family. We’ve
designed the Kohl’s shopping experience around national brands,
deep in-stock selection, an efficient store layout and fast check-out.
Convenience at Kohl’s also means an on-line store for those who
prefer to shop from home.
Kohl’s proprietary credit card provides added savings for our customers.
Our high quality credit card portfolio functions as a loyalty program
that drives sales by bringing customers into our stores through direct
mail promotions, special discounts and other benefits.
There are many attributes that differentiate Kohl’s from the competition
and position us for continued growth. None of them would be possible
without our outstanding team of Associates. Our Associates are
exceptional people who care about their customers, each other and
their company. Our Associates have always been, and will continue to
be, the driving force behind our success, because whether they work
in our stores, distribution centers or corporate office, it is our people
who truly set Kohl’s apart.
Commitment to our shareholders
Our Board of Directors takes its responsibility to shareholders very
seriously. In anticipation of the new financial reporting and disclosure
requirements of the Sarbanes-Oxley Act, we revised our Board committee
structure for 2003. We expanded the role of our Nominating Committee
to include corporate governance oversight. The new Governance and
Nominating Committee has adopted corporate governance guidelines
that define how we conduct our business. This committee, as well
as our Compensation and Audit Committees, provide independent
oversight and compliance functions for the key areas of our business.
Our Board also monitors compliance with our code of ethics, which
applies to every Kohl’s Associate.
To provide information to our shareholders more quickly, we have
accelerated the timetable for our 10-K and 10-Q filings with the
Securities and Exchange Commission. Our 10-K will be filed within
60 days of year-end and our 10-Qs will be filed 35 days after the
end of each quarter.
As in the past, we will continue to manage our business both ethically
and responsibly, and with a commitment to representing the best
interests of our shareholders.
More milestones ahead
When we went public in 1992, we said our goal was to be a major
national retailer. We achieved that goal with our March 2003 entry
into Southern California. But for every milestone we reach, there’s a
new one on the horizon. There are many untapped new markets that
offer excellent growth potential for Kohl’s. We have the infrastructure
and financial strength to continue our steady expansion and we have
a solid track record on which we can build.
Most of all, we have exceptional Associates, loyal customers, quality
vendors and supportive shareholders who share our vision of continued
growth and improved performance by bringing brands, value and
convenience to customers from coast to coast.
Kevin Mansell
President
Arlene Meier
Chief Operating Officer
Board of Directors Changes
In February 2003, Larry Montgomery was elected chairman of
the board, succeeding Bill Kellogg. Larry will continue to serve
as chief executive officer, a position he has held since 1999.
A 32-year veteran of the retail industry, Larry joined Kohl’s
in 1988, was promoted to executive vice president in 1993,
joined the Board of Directors in 1994 and became vice
chairman in 1996.
Bill Kellogg, who retired from day-to-day operations in January
2001, will continue as a member of the Board and will serve
as presiding director of non-management Board meetings.
In addition, we are pleased to welcome Judith Sprieser,
president and CEO of Transora, Inc., to our Board of Directors.
Her extensive experience in corporate finance, accounting and
operations will be of great value to the Board.
Herb Simon, a director since 1988, has retired from the Board.
Herb provided tremendous guidance through the years in the
development and execution of our growth strategy. We wish
Herb well and thank him for his many contributions to our success.
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Larry Montgomery
Chairman and
Chief Executive Officer