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About Kohl's, Inc.

Clothing retailer Kohl's operates about 1,160 namesake department stores across the US as well as some 15 FILA outlets and Off-Aisle clearance centers. Competing with discount and mid-level department stores, the company sells moderately priced name-brand and private-label apparel, shoes, accessories, and housewares. Its private-label brands include Apt. 9, Croft & Barrow, and Jumping Beans; Kohl's also sells exclusive brands through agreements with Lauren Conrad, Vera Wang, and the Food Network, among others. More than 90% of the company's stores are freestanding or in strip centers with the rest located in malls.


By product, Kohl's generates nearly 30% of sales from women's clothing and some 20% from men's clothing. Most of the remainder of sales come from home products (nearly 20%), children's clothing (more than 10%), and accessories and footwear (about 10% each).

The company generates about 5% of revenue from credit card operations, third-party advertising on the Kohl's website, and unused gift cards, among other non-merchandise items.

Kohl's boasts a strong portfolio of national, exclusive, and private-label brands, with about 60% of its sales tied to national brands and the rest coming from private and exclusive brands.

Geographic Reach

Kohl's network of some 1,160 stores covers the entire US. Its largest markets are the Midwest (with more than a quarter of stores and led by Illinois with about 65) and West (with about 20% of stores and led by California with nearly 120); other leading states include Texas, Ohio, Florida, New York, and Pennsylvania.

Facilities that serve Wisconsin-based Kohl's e-commerce brick-and-mortar businesses are in Ohio, Virginia, Missouri, New York, Georgia, Illinois, California, Maryland, Indiana, and Texas. 

Sales and Marketing

Kohl's sells its products through its stores, online, and through in-store kiosks that offer customers free shipping to their homes. As an omnichannel retailer, the company doesn't make a clear distinction between store and digital sales and thus doesn't report them separately.

Financial Performance

Kohl's has seen slow growth over the past five years with few new store openings and sluggish movement in comparable store sales. Revenue is up 6% since fiscal 2014. Its profit has been sporadic amid rising merchandise costs and investments in IT and marketing to accelerate growth. However, after several years of long-term debt hovering around $2.8 billion, the company cut that figure by a third in 2018. 

The retailer's revenue rose slightly in fiscal 2018 (ended January 2019) to $20.2 billion, up 1% from the prior year. The growth is the result of a 1.7% increase in comparable store sales primarily because of higher average transaction values, offset somewhat by a 52-week fiscal year as compared to 53 weeks in 2017.

After a substantial jump in 2017, net income fell 7% in 2018 to $801 million. Impairments, store closings, and other costs of $104 million, and loss on extinguishment of debt of $63 million, contributed to the decline. 

Cash at the end of 2018 was $934 million, a decrease of $374 million from the prior year. Cash from operations contributed $2.1 billion to the coffers, while investing activities used $572 million, mainly for capital expenditures. Financing activities used another $1.9 billion for repayment of long-term debt as well as stock buyback and dividends paid.


As is the case across the entire retail industry, Kohl's is embracing technology and innovation as keys to strengthening customer relationships. Since fiscal 2016 nearly 70% of its capital expenditures have gone toward information technology and omnichannel initiatives, a trend the company expects to continue in 2019. Kohl's is pursuing a seamless omnichannel experience, which allows customers to browse, buy, pick up, and return merchandise online, in stores, or through a combination of both. More specifically, it is investing in data and analytics for enhanced marketing and personalization initiatives, is improving its fulfillment capabilities, and is migrating its systems and applications to the cloud.

In a somewhat related and slightly surprising strategic move, the retailer in 2017 entered an agreement with its top online competitor, Amazon, to accept Amazon returns in Kohl's stores and establish Amazon Smart Home Experience zones in a limited number of its locations. Amazon Smart Home features Amazon devices such as the Echo and Fire TV. The deal was expanded to include all Kohl's locations in mid-2019.

Brick-and-mortar locations are still the cornerstone of Kohl's business. Although the retailer is shrinking its stores, unlike many of its competitors it is shrinking the size, not the number. The company wants to maintain its store base as a foundation for online sales, as well as branding/marketing efforts, and it hopes to use the smaller store format to expand into new markets. In 2018 Kohl's shrunk the size of hundreds of locations by about a third (from some 90,000 sq. ft. to some 60,000 sq. ft.). In some cases the excess footage is being rented out to discount supermarket chain Aldi or fitness chain Planet Fitness. Kohl's is also experimenting with a 35,000 sq. ft. store model that is being tested in about a dozen cities.

Company Background

Max Kohl (father of Sen. Herbert Kohl of Wisconsin) opened his first grocery store in Milwaukee in the late 1920s. Over the years he and his three sons developed it into a chain and in 1938 Kohl's incorporated.

Kohl opened a department store (half apparel, half hard goods) in 1962 next door to a Kohl's grocery. In the mid-1960s he hired William Kellogg (no association with the cereal Kelloggs), a twentysomething buyer in the basement discount department at Milwaukee's Boston Store, for his expertise in budget retailing. Kohl and Kellogg began developing the pattern for the store, carving out a niche between upscale department stores and discounters (offering department store quality at discount store prices).

Kohl's went public in 1992.

Kohl's, Inc.

N56 W 17000 Ridgewood Dr N 56 W
Menomonee Falls, WI 53051
Phone: 1 (262) 703-7000

Firm Stats

Employer Type: Privately Owned
Sourcing Manager: Vanessa Ashford
Senior Executive Vice President: Johnathan Loehlein
Executive Manager: Felix Sanchez
Employees (This Location): 700
Employees (All Locations): 35,001

Major Office Locations

Menomonee Falls, WI

Other Locations

Anchorage, AK
Birmingham, AL
Decatur, AL
Dothan, AL
Florence, AL
Hoover, AL
Huntsville, AL
Madison, AL
Mobile, AL
Montgomery, AL
Opelika, AL
Oxford, AL
Prattville, AL
Spanish Fort, AL
Bryant, AR
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