PROVEN AND UNIQUE STORE CONCEPTValue, Name Brands and Convenience

Positioned To Serve Customers Who Shop Positioned To Serve Customers Who Shop Department Stores As Well As Discount StoresDepartment Stores As Well As Discount Stores

THE MIDDLE MARKET CONSUMER

Customers Trading Up to Buy Name Brand

Customers Wanting More Value

Discounters

Department Stores

OUR CORE CUSTOMER

(2)

2232

(1)

32

46

57

32

(50)

0

50

100

150

200

250

300

350

400

450

500

1995 1996 1997 1998 1999 2000E 2001E

UNIT EXPANSION

# of Stores

150

182

213

259

320

375-380

Existing Stores (Opened more than 12 months)

Store Closings

New Store Openings (Opened less than 12 months)

Sq. Ft. Growth 23% 20% 25% 21% 24% 26% 18-19%

128

22

2000 EXPANSION

ND

SD

NE

MO2

IA

KYVA

PA3

NC1

MN1

IL3

IN

MI2

TX5

CO4

TN

NY16

OK3

MD - 1

WI1

OH

KS

NJ - 11

CT - 8

DE

New Markets/StatesFill-in StatesExisting States

WV

SIGNIFICANT EXPANSION OPPORTUNITIES

2001 New States

1992 - 2000 States

ND

SD

NE

KS MO

IA

KYVA

PANJ

MD

DE

NC

WV

MN

WI

IL

IN OH

MI

GA

CT

TX

CO

TN

NY

OKAK

EFFECTIVE MARKETING

• Newspaper inserts

Over 17.0 million fullcolor inserts weekly

• Broadcast

• Credit card

7.1%

(0.8)%

3.1% 2.3%

(3.0)%

(5.0)%

(2.8)%

(0.5%)

(6)

(4)

(2)

0

2

4

6

8

Kohl's Sears Federated Mervyn's May JCPenney

Dillard DaytonHudson

COMP STORES SALES vs.NATIONAL RETAILERSAUGUST YTD

7.1%

(4.0)%

3.8%

6.4%

(5)

(3)

(1)

1

3

5

7

9

Kohl's Wal-Mart Target Gap

(%)

Kohl’s vs. High Growth Retailers

Kohl’s vs. Direct Competitors

AVERAGE COMP STORE SALES GROWTH1995 - 1999

8.6%

7.0% 6.8%6.0%

0

2

4

6

8

10

Kohl's Gap Wal-Mart Target

(%)

Kohl’s vs. High Growth Retailers

8.6%

3.3% 3.1% 3.0%

2.0%

0.1%

(0.2%)(1.5%)

(4)

(2)

0

2

4

6

8

10

Kohl's May Sears Federated Dillard DaytonHudson

JCPenney

Mervyn's

Kohl’s vs. Direct Competitors

Leveraging Leveraging TechnologyTechnology

E-commerceE-commerce Capitalize on Kohl’s brand awareness in the Capitalize on Kohl’s brand awareness in the marketplace. marketplace. Integrate sales and customer service with existing Integrate sales and customer service with existing store locations.store locations. Building an infrastructure to support web site Building an infrastructure to support web site updates, fulfillment, and customer service.updates, fulfillment, and customer service.

Business SystemsBusiness Systems Internally built systems that allows us to analyze Internally built systems that allows us to analyze sales, merchandise placement and flow of goods to sales, merchandise placement and flow of goods to stores.stores. Continue to build new systems that give us a Continue to build new systems that give us a technological edge on competition.technological edge on competition.

Merchandise Analyst• Store Inventory Manager

• Comp, Non-Comp and New Stores

• Trending Stores/Markets

• Maximize productivity while ensuring in-stocks

• Average Analyst Manages:

$100.0 million in inventory

3,500 Items

300 + Stores

Areas of outside interaction - Future Careers?• Merchant Team• Stores• Logistics/Distribution Centers• Vendors• Micro Markets• E-Commerce• Customer• MIO