January 10th, 2018
Kohl’s Department Store Business Case – presentation
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
Revenues (Plunkett Research Ltd 2013):
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).
Go to part 2 here.