Kohl’s Announces Evolution of its Multi-Year Greatness Agenda Strategy

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MENOMONEE FALLS, Wis.–(BUSINESS WIRE)–Kohl’s
(NYSE: KSS) today unveiled new initiatives under the company’s
overarching strategic framework, called the Greatness Agenda. The
multi-year plan was designed to drive organic top-line growth by seeking
out and taking advantage of opportunities that will elevate the course
of business, while also creating a clear focus around those business
critical activities that are required to accelerate growth. While
recommitting to the purpose, pillars and values established by the
Greatness Agenda one year ago, the Greatness Agenda has evolved based on
customer and associate insights from the first year.

“The Greatness Agenda is our multi-year plan and it’s working. Since
announcing this strategy one year ago, we’ve changed the trajectory of
our performance trend line from negative to positive,” said Kevin
Mansell, Kohl’s chairman, CEO and president, as he shared the updated
strategy to an audience of retail industry leaders at the WWD Apparel &
Retail CEO Summit in New York today. “The key business initiatives
outlined in the Greatness Agenda one year ago have delivered, or in most
cases over delivered, to our plan. With one year of key wins and further
customer insights under our belts, we are on course to meet our
three-year goals and become the most engaging retailer in America.”

Driven by a clear purpose “to inspire and empower families to lead
fulfilled lives,” the Greatness Agenda continues to be supported by the
five pillars it is built upon: amazing product, incredible savings, easy
experience, personalized connections and winning teams. To measure
success in the near-term, Kohl’s set out to reach three primary goals by
the end of 2017: to increase sales to $21 billion, be in the 90th
percentile for associate engagement and best-in-class for customer
engagement.

In the first year of the Greatness Agenda, Kohl’s saw immediate success
in its newly launched Yes2You
Rewards
loyalty program – now more than 33 million members strong,
the rollout of an expanded and elevated beauty department, introduction
of truly personalized marketing efforts, launch of a highly-ranked new
mobile app, double digit year-to-date growth and significant market
share gain in the active and wellness business, and the launch of
several key national brands, including FitBit, Madden Girl, Columbia,
Samsung, Bliss and more.

During the second year of the Greatness Agenda, Kohl’s will seek out and
take advantage of the following opportunities, supporting each of the
five strategic pillars, that Kohl’s believes will accelerate the course
of business:

Amazing Products

  • Create unique assortments by store to drive local
    relevancy
  • Intensify the focus on growing the women’s apparel business

“We recognized quickly that our actions on localization were bearing
fruit and we needed to elevate our vision,” Mansell said. “Our goal now
is to create unique assortments by individual store and complete the
process across our entire merchandise offering by the middle of next
year.”

Easy Experience

  • Launch new formats and distribution channels to increase sales
  • Become world class in digital by creating a seamless experience
    in-store, online or on mobile devices
  • Drive traffic in stores through buy online, pick-up in stores

“We are in a strong position to explore new formats as an additional
avenue for growth and diversification. We have created a smaller, more
nimble 35,000 square foot Kohl’s prototype and will open five to ten of
these Kohl’s stores in underserved markets next year,” Mansell said. “We
have also leveraged the strength of our exclusive brands to create
completely new retail outlet locations solely selling our proprietary
brands, starting with FILA. Next year, we will open 10 to 15 FILA stores
in outlet malls across the country. Additionally, after seeing the
potential from our first Off-Aisle by Kohl’s pilot store opened last
year, we will open two more Off-Aisle by Kohl’s locations in 2016. All
three of these new formats create new revenue streams and growth for
Kohl’s.”

Personalized Connections

  • Accelerate personalization as a key competitive advantage
    across all customer experience touchpoints
  • Win new customers by capturing greater share of Kohl’s core
    customer audience and targeting two growing segments of the
    population: millennials and Hispanic families
  • Activate Kohl’s Yes2You Rewards loyalty program by realizing
    the power and potential of the program – now 33 million members strong
    after its first year

“With almost 80 percent of our sales tied to known customers, we know,
better than any other retailer, how our customers behave and what they
purchase,” Mansell said. “We are doubling-down in our personalization
efforts and unlocking the power of all of this data to create truly
personalized experiences with Kohl’s. This will allow us to offer
experiences that are most relevant to individuals’ habits, interests and
families. We will engage with our customers in a manner way beyond
deals.”

Incredible Savings

  • Elevate our value leadership through insights-driven pricing
    and promotion excellence

“Kohl’s has always been a destination for great value, but we are not
getting full credit for the value we offer,” Mansell said. “We have
analyzed multiple years of Kohl’s data and conducted extensive consumer
research and are now positioned to use data-driven insights to make our
value leadership more apparent to customers. We will focus intensely on
the categories and items that create the greatest impact on value
perception and reclaim our spot as the value leader.”

Winning Teams

  • Be famous for engaging, developing and recognizing great teams

“We have two efforts underway to ensure we have the winning teams in
place that will drive the success of the business. First, we developed
new competencies and capabilities for talent throughout our organization
and invested in developing associates and attracting new, key leaders.
In fact, 25 percent of the corporate roles we have today did not exist
three years ago,” Mansell said. “Second, we are laser focused on having
the most engaged associates in the industry – as spelled out in the
creation of the Greatness Agenda and driven by the associate engagement
metric in our goals for 2017. In the first year, we’ve already achieved
engagement scores in the 90th percentile for three of our
four business areas and have seen significant increases in all
categories throughout the company.”

*MEDIA NOTE: This presentation will be available on KohlsCorporation.com.

Cautionary Statement Regarding Forward-Looking
Information

This press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. Kohl’s
intends forward-looking terminology such as “believes,” “expects,”
“may,” “will,” “should,” “anticipates,” “plans,” or similar expressions
to identify forward-looking statements. Such statements are subject to
certain risks and uncertainties, which could cause Kohl’s actual results
to differ materially from those anticipated by the forward-looking
statements. These risks and uncertainties include, but are not limited
to, those described in Item 1A in Kohl’s Annual Report on Form 10-K,
which is expressly incorporated herein by reference, and other factors
as may periodically be described in Kohl’s filings with the SEC.

About Kohl’s

Kohl’s (NYSE: KSS) is a leading specialty department store
with 1,166 stores in 49 states. With a commitment to inspiring and
empowering families to lead fulfilled lives, the company offers amazing
national and exclusive brands, incredible savings and inspiring shopping
experiences in-store, online at Kohls.com and
via mobile devices. Committed to its communities, Kohl’s has raised more
than $274 million for children’s initiatives nationwide through its
Kohl’s Cares® cause merchandise program, which operates under Kohl’s
Cares, LLC, a wholly-owned subsidiary of Kohl’s Department Stores,
Inc. For additional information about Kohl’s philanthropic and
environmental initiatives, visit www.Kohls.com/Cares. For
a list of store locations and information, or for the added convenience
of shopping online, visit www.Kohls.com.

Connect with Kohl’s:

Facebook (http://www.facebook.com/Kohls)
Twitter
(http://twitter.com/Kohls)
Google+ (http://plus.google.com/+Kohls)
Pinterest
(http://pinterest.com/Kohls)
Instagram
(http://instagram.com/Kohls)
YouTube
(http://www.youtube.com/kohls)

Contacts

Kohl’s
Jen Johnson, 262-703-5241
Jen.Johnson@kohls.com
or
Julia
Fennelly, 262-703-1710
Julia.Fennelly@kohls.com