Kohl’s is one of the most popular retail discounted department store in the nation. Their “purpose and values are to inspire and empower families to lead fulfilled lives … [They have the] Greatest Agenda [as their] strategic framework [which] built on five pillars: amazing product, incredible savings, easy experience, personalized connections and winning teams” (Kohl’s Illinois, Inc.). According to Bloomberg Business written by Rupp and Coleman-Lochner, “Kohl’s is trading at biggest premium to Macy’s in four years.” Part of Kohl’s growth strategy in 2016, according to Retail Touch Points, is to “open new store formats”.
While having the five pillars in the Greatest Agenda in mind, Kohl’s goal is to be “the most engaging retailer in America … by focusing on their customers and creating product assortments that excite them” (Kohl’s Illinois, Inc.). There are four major values at Kohl’s: 1) they “put customers first” with a “yes we can approach”; 2) they “act with integrity” to build trust; 3) they “build great teams” with great communications within the company and with their consumers; and 4) they “drive results … with a sense of urgency and accountability” (Kohl’s Illinois, Inc.). Kohl’s first started in Brookfield, Wisconsin in 1962, and now it has 1,200 stores across the nation, with the e-commerce platform of Kohls.com. This growth has shown that their pricing and retail strategy has been in the right direction to fit their consumers’ needs.
In 2016, “Kohl’s will add three new concepts to its store footprint … [They] will open five to 10 smaller … underserved markets [and] 10 to 15 FILA sports apparel stores in outlet malls” (Retail Touch Points). The CEO and President Kevin Mansell commented at the WWD Apparel and Retail CEO Summit on October 27 that Kohl’s is ready to “explore new formats as an additional avenue for growth and diversification … [The plan is called] “Kohl’s Greatest Agenda” (Retail Touch Points) [, which] “includes [the] five pillars: amazing product, incredible savings, easy experience, personalized connections and winning teams” (Kohl’s Illinois, Inc.). Another goal for Kohl’s is that they want “to create store-specific product assortments to drive great local relevancy, and to intensity its focus on growing the women’s apparel business” (Retail Touch Points).
Kohl’s did not become this successful overnight. They have many obstacles along the way. One of which is to get into a recognized place among all U.S. department stores. According to Bloomberg Business written by Rupp and Coleman-Lochner, Koh;’s has become “the third-largest U.S. department-store chain … by promoting outside brands such as Levi’s and Nike [with a focus] more on in-house and exclusive products [that consumers] can’t find elsewhere. [They have a] rewards program [that attracted new consumers and returning consumers to come back, too]. Kohl’s extended holiday hours have gotten them profits and has gained “since 2010 … almost twice the 2 percent increase at Macy’s in the same period” (Rupp and Coleman-Lochner). This effected Macy’s to not having as much gain at the same rate as they used to be. “Kohl’s Yes2You Rewards loyalty program … has more than 25 million members” (Rupp and Coleman-Lochner). This program brings in new consumers and attracted usual consumers to return because the rewards card does not required a credit card or background check. It’s a welcome to mid- to low-income families.
In conclusion, Kohl’s has been in the industry for many years, however, it is only the recent five to 10 years when they started to get better recognized among many U. S. department stores. They not only thought of how to improve from the company (inside – increase profit), but also about the consumers (outside – customer service). Their Greatest Agenda with the five pillars are brilliant inspiring ideas to have as a growth strategy. The Yes2You Rewards loyalty program has met consumers’ psychological needs – collect points when purchase and get Kohl’s cash to be used on next purchase as cash. Everybody wants cash or coupons to be used on the next purchase. That has become a reason for consumers to come back again and again. When consumers return, there is a sale. Kohls.com is another highlight to increase their profit. Consumers can purchase at the store on Kohl’s.com machines or at home online, and then pick their order up at any local store. This cut down the time to stay on line to pay the purchase. It also gives consumers a variety of choices of the products. Usually there is more variety of products available online. Sometimes, there are online only deals, too. Moreover, the new stores’ formats that Kohl’s plan to have in 2016 should give consumers a new impression and more choices to shop at Kohl’s. In short, Kohl’s is doing well in business and will do better in the future.
- Kohl’s Illinois, Inc. (2015). Company. Kohl’s Illinois, Inc. Retrieved from https://www.kohlscorporation.com/company.
- Retail Touch Points (2015, 28 October). Kohl’s To Open New Store Formats As Part of Growth Strategy. Retail Touch Points. Retrieved from http://www.retailtouchpoints.com/features/news-briefs/kohl-s-to-open-new-store-formats-as-part-of-growth-strategy.
- Rupp, L. and Coleman-Lochner, L. (2015, 30 March). How Kohl’s Is Outperforming Its More Upscale Rival Macy’s. Bloomberg Busines. Retrieved from http://www.bloomberg.com/news/articles/2015-03-30/kohl-s-backs-big-name-brands-to-boost-shares-faster-than-macy-s.
