Kohl's Financial Analysis
Kohl’s Corporation Financial Analysis
American retailer Kohl’s has become a prevalent fixture for the purchase of discounted clothing and home goods in the mid-west for over twenty-five years. The history of the company however has roots much more modest than present day market dominance would suggest. Dating back to a Wisconsin supermarket in 1946, founder Max Kohl grew his small business to the most successful chain of supermarkets in the Milwaukee area (12). By 1962 Kohl opened his first department store in Brookfield, Wisconsin where an eclectic selection of merchandise, from sporting goods, motor oil and candy, was sold (11). In 1972, the Kohl’s Company which by then consisted of 50 grocery stores, six department stores, three drug stores and three liquor stores, sold 80 percent of its interests to the American subsidiary of British American Tobacco (BAT), p.l.c., BATUS, Inc. The Kohl’s family ended participation in the operations of the company after soon after the sale (11).
BATUS, like many other tobacco companies began looking to diversify its holdings by acquiring department stores in the 1960’s. By the mid-1980’s BATUS held 19th place for largest retail holdings in the US with assets including Gamble’s, Saks Fifth Avenue and Marshall Field & Co. (11). In 1983 BATUS, Inc. dropped its interest in the Kohl’s Food Stores to Atlantic and Pacific Tea Company (12). In 1986 a group of private investors purchased the 40 Kohl’s department stores and formed Kohl’s Corporation. It was during that period of private ownership that the Kohl’s management team began to develop the Kohl’s sales model that is still in use today (11).
The primary focus for the Kohl’s management was to define themselves as an affordable family- oriented retailer that was an amalgamation of a traditional department store feel but with a lower cost price structure of a discount store. It was also during that time that the company tightened its product line and dropped less profitable
American retailer Kohl’s has become a prevalent fixture for the purchase of discounted clothing and home goods in the mid-west for over twenty-five years. The history of the company however has roots much more modest than present day market dominance would suggest. Dating back to a Wisconsin supermarket in 1946, founder Max Kohl grew his small business to the most successful chain of supermarkets in the Milwaukee area (12). By 1962 Kohl opened his first department store in Brookfield, Wisconsin where an eclectic selection of merchandise, from sporting goods, motor oil and candy, was sold (11). In 1972, the Kohl’s Company which by then consisted of 50 grocery stores, six department stores, three drug stores and three liquor stores, sold 80 percent of its interests to the American subsidiary of British American Tobacco (BAT), p.l.c., BATUS, Inc. The Kohl’s family ended participation in the operations of the company after soon after the sale (11).
BATUS, like many other tobacco companies began looking to diversify its holdings by acquiring department stores in the 1960’s. By the mid-1980’s BATUS held 19th place for largest retail holdings in the US with assets including Gamble’s, Saks Fifth Avenue and Marshall Field & Co. (11). In 1983 BATUS, Inc. dropped its interest in the Kohl’s Food Stores to Atlantic and Pacific Tea Company (12). In 1986 a group of private investors purchased the 40 Kohl’s department stores and formed Kohl’s Corporation. It was during that period of private ownership that the Kohl’s management team began to develop the Kohl’s sales model that is still in use today (11).
The primary focus for the Kohl’s management was to define themselves as an affordable family- oriented retailer that was an amalgamation of a traditional department store feel but with a lower cost price structure of a discount store. It was also during that time that the company tightened its product line and dropped less profitable
Cited: (1) Ashley, Mark. “Kohl’s pushing west, emphasizes quality.” The Milwaukee Journal 07 Apr. 1981: 2-11. Print. (2) Ashley, Mark (3) Bevel, Mike. “Kohl’s, Capital One, and Chase: As if They Never Said Goodbye.” insideARM.com. Accounts Receivable Management. 12 Apr. 2011. http://www.insidearm.com/daily/kohls-capital-one-and-chase-as-if-they-never-said-goodbye/ (4) Brooks, Erik (6) Hajewski, Doris. “Online shopping loses its luster.” Milwaukee Journal Sentinel. 05 Dec. 2001. D1 (7) “Is Kohl’s Going Upscale?” nbcdfw.com (8) Lentz, John. “J. Lo, Marc Anthony to launch brand at Kohl 's.” Reuters.com. Thomson Reuters. 18 Nov. 2010. http://www.reuters.com/article/2010/11/18/us-kohls-jlo-idUSTRE6AH5QW20101118 (9) Lentz, John (12) “Kohl’s Fact book” Kohl’s Department Stores. 18 Mar. 2011. http://www.kohlscorporation.com/InvestorRelations/pdfs/FactBook/factbook.pdf (13) “Kohl’s key revenue figure rises 5 percent in Feb.” Yahoo Finance