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Kohl's

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This article is about the department store. For other uses, see Kohl.
Kohl's Corporation
Company typePublic
NYSE: KSS
S&P 500 Component
IndustryRetail
FoundedSeptember 12, 1962; 62 years ago (1962-09-12)
Milwaukee, Wisconsin, U.S.
FounderMaxwell Kohl
HeadquartersMenomonee Falls, Wisconsin, U.S.
Number of locations
1,158 (Q1 2018)[1]
Key people
Michelle Gass (CEO & Director)[2][3]
ProductsClothing, footwear, bedding, furniture, decor, jewelry, toys, appliances, beauty products, electronics, and housewares.
RevenueIncrease US$ 20.229 billion (2018)[4]
Decrease US$ 1.361 billion (2018)[4]
Decrease US$ 801 million (2018)[4]
Total assetsDecrease US$ 12.47 billion (2018)[4]
Total equityIncrease US$ 5.527 billion (2018)[4]
Number of employees
85,000 (2017)
Websitekohls.com

Kohl's is an American department store retail chain, operated by Kohl's Corporation. As of February 2013, it is the largest department store chain in the United States with 1,158 locations, operating stores in every U.S. state except Hawaii. The company was founded by Polish immigrant Maxwell Kohl, who opened a corner grocery store in Milwaukee, Wisconsin in 1927.[5][6] It went on to become a successful chain in the local area, and in 1962 the company branched out by opening its first department store.[7] British American Tobacco Company took a controlling interest in the company in 1972 while still managed by the Kohl Family, and in 1979, the corporation was sold to BATUS Inc. A group of investors purchased the company in 1986 from British American Tobacco and took it public in 1992.

Kohl's is headquartered in the Milwaukee suburb of Menomonee Falls, Wisconsin.[1] It became the largest department store chain in the United States in May 2012, surpassing its biggest competitor J. C. Penney.[8] The company is listed on both the S&P 500 (since 1998) and the Fortune 500.[9] In terms of revenue, the chain was the 23rd-largest retailer in the United States in 2019.[10] As of 2013, Kohl's was the second-largest U.S. department store company by retail sales.[11]

History

The exterior of a typical Kohl's department store in Beaverton, Oregon
Kohl's in Huntington Beach, California

Maxwell Kohl, who had operated traditional grocery stores since 1927, built his first supermarket in 1946, the first in what would become a southeastern Wisconsin chain known as Kohl's Food Stores.[12] In September 1962, after building Kohl's Food Stores into the largest supermarket chain in the Milwaukee area, Kohl opened his first department store in Brookfield, Wisconsin. He positioned Kohl's between the higher-end department stores and the discounters, selling everything from candy to engine oil to sporting equipment.[7][13]

In 1972, the British American Tobacco Company's U.S. retail division, Batus Inc., bought a controlling interest in Kohl's Corporation, which at the time operated 50 grocery stores, six department stores, three drug stores, and three liquor stores.[14][15] The Kohl family, led by Allen Kohl and Herb Kohl, continued to manage the company. Herb Kohl left the management in 1979,[16] eventually becoming a United States Senator and owner of the Milwaukee Bucks. The firm then expanded Kohl's presence from 10 to 39 stores in Wisconsin, Illinois and Indiana. The grocery stores were sold to A&P in 1983,[17][18] operating under the name Kohl's Food Store, and later Kohl's Food Emporium. In February 2003, A&P put the Kohl's Food Stores up for sale,[19] as part of an effort to reduce debt. That same year, A&P closed all Kohl's Food Stores locations and the Kohl family left remaining management.[20][21]

A group of investors, led by the senior management, purchased the company in 1986.[22] Building on the existing 40 department stores, the company added 27 more stores over the next two years. In 1988, the chain acquired 26 locations from the Chicago-based retailer MainStreet, gaining several stores in Chicago's suburbs, the Twin Cities, and Michigan.[23][24] Kohl's completed its initial public offering on May 19, 1992 and began trading on the New York Stock Exchange under the symbol KSS.[25][26]

During the 2000s, Kohl's expanded nationwide to 49 states. Building from 76 stores in the Midwest in 1992, Kohl's expanded into the New York metropolitan area in 2000 after Caldor was liquidated. The chain later expanded into California in 2003 with 28 new stores, the Pacific Northwest in 2006 with 10 new stores, and the Southeast with 43 new stores opening between 2005 and 2008.[27] To raise money to repurchase its stock and open new stores, Kohl's sold its credit card division in 2006 to J.P. Morgan Chase for $1.5 billion.[28] In 2011, Kohl's replaced Chase with Capital One as their private credit card processing partner for an undisclosed sum.[29]

Kohl's hired New York City advertising agency DeVito/Verdi in 2009 to strengthen the Kohl's brand via a series of national television, online, and social media campaigns.[30] The same year, Newsweek magazine ranked the company 18th overall and first in its industry in its "Green Rankings",[31] an examination of 500 of the largest corporations on their environmental track records. Newsweek remarked that Kohl's had the largest solar power program of any retailer globally, it pursues green building certification, and over 78 locations in six states have solar panels. Kohl's had also begun to sell reusable shopping bags the previous year.[32]

Kohl's was awarded $62.5 million in tax credits from the Wisconsin Economic Development Corporation in 2012. The retailer was to create 3,000 jobs with the funds, but only created 473.[33] In the same year, Kohl's requested financing from the village of Menomonee Falls, Wisconsin to fund the construction of its new headquarters there. Kohl's received $2 million, the first of five installments that was to equal a total payout of $12 million, but ultimately backed out of the transaction.[34]

In 2015, the company opened the first test store of Off/Aisle, a chain built around selling like-new clothing, home goods, jewelry, and accessories that were purchased and returned at Kohl's stores. The stores sold items at discounted prices, and had a more restrictive return policy than typical Kohl's stores.[35] The Off/Aisle stores were ultimately closed in 2019.[36]

In early January 2017, Kohl's shares fell 19% in value, in what The Wall Street Journal said was "the stock's worst day on record," and noted that it was a noticeable exception to the overall declining volatility of the market.[37] The company ranked 157th on the 2018 Fortune 500, the annual list of the largest United States corporations, having earned revenues of $19.095 billion in 2017.[38] In that year Kohl's entered into a partnership with Amazon, which included a program where select stores would accept Amazon returns; in 2019 it was expanded nationwide.[39] In 2018 Kohl's announced a pilot program to lease space to grocer Aldi and, the following year, to fitness center Planet Fitness, alongside up to 10 stores each.[40]

On March 30, 2020, due to the spread of the 2019-20 coronavirus outbreak, it was announced that all Kohl's stores nationwide would be closed indefinitely.

Brands and store layout

Kohl's store brands include diffusion lines from high-end designers such as Dana Buchman, Vera Wang,[41] Narciso Rodriguez,[42] and Peter Som.[43] Celebrities such as Avril Lavigne, Lauren Conrad, Daisy Fuentes, Paula DeAnda, Jennifer Lopez, Marc Anthony, and Tony Hawk have sold branded clothing exclusively through Kohl's.[44]

Kohl's private brands generate nearly half of the firm's $19 billion in annual sales. These include in-house clothing brands such as American Beauty, Apt. 9, Croft & Barrow, Jumping Beans, So, Tek Gear, and Urban Pipeline. The Sonoma Goods for Life brand of apparel and home goods alone is worth over a billion dollars, and Kohl's announced relaunch plans for the brand in 2016.[45] Kohl's has also purchased the exclusive retail rights to existing brands such as Candie's and Mudd Jeans.

Kohl's uses a "racetrack" layout with a single aisle that circles the entire store, a layout borrowed from discount stores.[46]

References

  1. ^ a b Kohl's Fact Book (PDF), Kohl's, 2018, retrieved July 10, 2018[permanent dead link]
  2. ^ admin. "Kohl's Announces CEO Succession Plan: Kevin Mansell to Retire in May 2018, Michelle Gass Appointed CEO-elect". kohls.com.
  3. ^ admin. "Leadership". corporate.kohls.com.
  4. ^ a b c d e "KOHLS Corp 2019 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. March 22, 2019.
  5. ^ "Max Kohl". NNDB. Retrieved February 8, 2017.
  6. ^ "The Immigrant Learning Center » Kohl". Retrieved February 8, 2017.
  7. ^ a b "Kohl's 50th Anniversary Sale Round-up + Coupon & Kohl's Cash - AL.com". blog.al.com. September 12, 2012. Retrieved March 24, 2016.
  8. ^ "Kohl's Corporation SEC 10K/A Filing". Kohl's. September 13, 2011. Archived from the original on July 24, 2018.
  9. ^ "Fortune 500 2012: Fortune 1000 Companies 101-200". CNN.
  10. ^ "Top 100 Retailers (2012)". National Retail Federation. Archived from the original on July 13, 2014.
  11. ^ "Top 100 Retailers". National Retail Federation. Retrieved July 12, 2014.
  12. ^ Daykin, Tom (June 13, 2002). "1st Kohl's supermarket to be next Lena's". Milwaukee Journal Sentinel. Archived from the original on June 28, 2002.
  13. ^ "Kohl's Q4 2013 FactBook". Kohl's. Retrieved May 25, 2014.
  14. ^ Stafford, Roger A. (October 28, 1972). "Kohl Buyer Provides Backing for Growth". Milwaukee Sentinel. p. 6, Part 2 – via Google News.
  15. ^ "Control of Kohl Corp. Sold To British-American Unit". The Wall Street Journal. October 30, 1972. p. 15. Alternate link via ProQuest.
  16. ^ "Kohl Family to Drop Ties to the Kohl Unit Of BAT Industries Ltd". Wall Street Journal. May 2, 1979. p. 41. Alternate Link via ProQuest.
  17. ^ "A. & P. to Acquire Kohl's From Batus". The New York Times. August 16, 1983.
  18. ^ "Batus Food unit acquired by A&P". WWD. Vol. 146, no. 63. September 29, 1983. p. 8. A&P Wednesday finalized its purchase of Kohl Food Stores, Milwaukee-based division of Batus Retail Division. Link via ProQuest.
  19. ^ "Local Kohl's Food Stores up for sale; Copps buys Madison stores". Milwaukee Business Journal. February 25, 2003.
  20. ^ Kohl's Q4 2013 FactBook. Kohl's. p. 6. Retrieved May 25, 2014.
  21. ^ "A&P to close area Kohl's Food Stores". Milwaukee Business Journal. June 13, 2003.
  22. ^ "Kohl's 'Driving Force' On the Road to Buyout". The New York Times. May 26, 1986.
  23. ^ "Campeau Sells Unit to Kohl's". The New York Times. October 29, 1988.
  24. ^ Randle, Wilma (February 22, 1989). "Kohl's to expand MainStreet". The Chicago Tribune. Retrieved October 1, 2009.
  25. ^ "Investor Relations - FAQ". Kohl's. Archived from the original on May 25, 2014. Retrieved May 25, 2014.
  26. ^ "Kohl's Corporation Announces Initial Public Offering Of Common Stock". PR Newswire (Press release). May 19, 1992 – via The Free Library.
  27. ^ Kohl's Q4 2013 FactBook. Kohl's. May 24, 2014. p. 11.
  28. ^ "Kohl's Agrees to Sell Credit Card Business". The New York Times. March 7, 2006.
  29. ^ Douglas, Danielle (April 10, 2011). "Capital One wins deal to back Kohl's credit cards". The Washington Post.
  30. ^ O'Leary, Noreen (November 28, 2012). "Kohl's Confirms Media Agency Review". Adweek. Retrieved June 26, 2016.
  31. ^ McGinn, Daniel (September 21, 2009). "Greenest Big Companies in America – The 2009 List". Newsweek. Archived from the original on June 25, 2010. Retrieved July 21, 2010.
  32. ^ "Green Ranking- Kohl's". Newsweek. Archived from the original on September 25, 2009. Retrieved July 21, 2010.
  33. ^ DeFour, Matthew (June 20, 2015). "WEDC made 27 awards totaling $124.4 million without proper review". Wisconsin State Journal. Retrieved June 23, 2015.
  34. ^ Daykin, Tom (November 21, 2013). "Kohl's drops plans for new headquarters building". Milwaukee Journal Sentinel. Retrieved June 23, 2015.
  35. ^ Romell, Rick (May 20, 2015). "Kohl's will test off-priced store for returned merchandise". Milwaukee Journal Sentinel.
  36. ^ "Kohl's to close its discount stores after 4 years in operation". www.msn.com. Retrieved June 12, 2019.
  37. ^ Kuriloff, Aaron (January 22, 2017). "How Often Does a Stock Fall 19% in One Day? Not Very Often". The Wall Street Journal. Retrieved January 23, 2017.
  38. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved November 21, 2018.
  39. ^ Thomas, Lauren. "Kohl's is going to accept Amazon returns in all of its stores across the country, starting in July". CNBC. Retrieved May 10, 2019.
  40. ^ Meyerson, Nathaniel; CNN Business. "Kohl's is shrinking stores and leasing out the extra space to Planet Fitness". CNN. {{cite web}}: |last2= has generic name (help)
  41. ^ "Vera Wang to design line just for Kohl's". USA Today. The Associated Press. August 24, 2006.
  42. ^ Wong, Jada. "Narciso Rodriguez Is Doing A Diffusion Line For Kohl's". Styleite.com. Archived from the original on April 22, 2014. Retrieved April 22, 2014.
  43. ^ Leibowitz, Laura (September 6, 2013). "Peter Som Kohl's Line Will Be The Next Fast-Fashion Collab To Get All Our Money". The Huffington Post.
  44. ^ "Not A Drill: Lauren Conrad Launched Her First Swim Collection". Retrieved September 28, 2017.
  45. ^ Wahba, Phil (March 10, 2016). "Kohl's Stakes its Turnaround on Relaunch of Top House Brand". Fortune. Retrieved March 31, 2017.
  46. ^ Epmeier, Bill (June 2, 2009). "A 'racetrack:' would it work for supermarkets? | Store Equipment & Design | Find Articles at BNET". Findarticles.com. Archived from the original on September 11, 2009. Retrieved October 9, 2009.
  • Kohl's official website
  • Kohl's corporate website
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