Kohl’s Department Store Business Case – presentation

Introduction

—Ease of access to information has led to a shift of competition from product focus to multiple aspects including (Lowson (2005, p. 645):

  • —product offer and positioning,
  • store location,
  • —customer service,
  • quality, retail design and store image,
  • retail promotion and advertising,
  • price points, and other channel members

—Strategic Issues for Kohl’s:

  • —Aligning 50-years of rich history to changing customer preferences.
  • —Capturing customers who come to the store for price comparison then buy from better online deals
  • Finding and targeting niche market (high-end ‘designer’ items or low-prices disposables => prior performance in latter segment has been poor

Market statistics

—Revenues (Plunkett Research Ltd 2013):

market statistics

—Employment ≈ 10 % of US National workforce (Pomoni 2013)

—Apparel sub-sector estimated to reach $1.3 trillion and department –store sub-sector around $400 billion in 2014 (Report Linker 2013)

—Retailer numbers in US clothing industry ≈ 100,000; estimated annual sale $150 million (Report Linker 2013).

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