Transcript kohls.ppt
KOHL’S Expect Great Things® A BA495 Presentation By: Bret Overbaugh, Shayna Overbaugh And Nick Phillips Fall 2006 A Short History of KOHL’S 1962 - Kohl's opens its doors with its first store located in Brookfield, WI. 1986 - Kohl's is purchased by a group of investors led by Kohl's senior management. The company opens its 40th store. 1992 - Kohl's offers 11.1 million shares of the company's stock to the public in one of the largest initial public stock offerings ever made by a Wisconsin company. A Short History of KOHL’S 1998 - Kohl's joins the S&P 500 1999 - Kohl's Corporation reports its fourth consecutive year of earnings growth over 30%. 2000 - Kohl's opens 60 stores to operate 320 stores in 26 states by year-end. 2003 - CEO Larry Montgomery becomes the chairman of the board of directors. A Short History of KOHL’S 2004 - Kohl's opens 95 stores including five new markets in California, making it the company's largest state with a total of 62 stores. By the end of fiscal year 2004, customers are shopping at Kohl's in 40 states through 637 stores. 2006 - Kohl's opens 85 new stores, including its expansion into the Northwest. Kohl’s is now at 732 total stores. In Oregon 9 new stores are planned by 2007. Currently 4 are open in Portland/Vancouver and one in the Eugene/Springfield area. Future – Kohl’s expects to reach 1,232 stores by year’s end 2010. Would I Know A Kohl’s If I saw One? Kohl’s operates stores in three settings: The Stand-Alone (Plover, WI) The Big Box Mall (Gateway Center - Springfield, OR) The Lifestyle Center (Bella Terra - Huntington Beach,CA) KOHL’S Mission Statement To be the leading family-focused, valueoriented, specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly and exciting. Some Basic Facts Kohl’s Target Market – “A two-income family with kids at home. They don't have a lot of time, and they are looking for value.” – CEO Lawrence Montgomery Kohl’s Marketing Mix – 32.6% Women’s 18.6% Men’s 18.4% Home 13.4% Children’s 9.2% Accessories Some Current Statistics 2005 Net Sales = $13.4 Billion. Up 14.5 % 1995-2005 ROI Annual rate 22.2% 1995-2005 Earnings per share annual growth rate 25.7% Ranked 166th on Fortune 500, up from 168th the previous year. Figures from Kohl’s Corp. 2006 Form 10-K Kohl’s National SWOT Analysis Strengths Weaknesses Weak Presence in Key Markets Low comparable store sales growth Opportunities Balanced Brand Mix Robust Distribution Network Strong Profitability Store Expansion Growth in Private Label Products Threats Industry Consolidation Increasing Rental Rates Weakening Consumer Spending Results provided by DATAMONITOR – July 2006 Kohl’s Springfield SWOT Analysis Strengths Weaknesses New to market area and the northwest At edge of the mall, away from core and food court Opportunities Strong brand mix – Private label and nationally known brands Clean appearance – Well designed/good layout Good highway (I-5) access in expanding area of town Growth potential with new highway interchange New businesses locating in area to provide more traffic Sears is moving away from clothing, opening more opportunity for sales Threats Sears Target Valley River Center Community Involvement US Youth Soccer Sponsorship Children's Hospital Partnerships Resources BusinessWeek On-Line – Q&A with Kohl’s Lawrence Montgomery DATAMONITOR – July 2006 Kohl’s SWOT Analysis Kohl’s website Fortune – Fortune 500 for 2006 Google Images