KOHL’S REMODEL STRATEGY

Mission Statement:

To be the leading family- focused, value- oriented, specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly, and exciting.

Summary of Store Visit

Summary: A store visit was conducted at the

beginning of our remodel analysis for Kohl’s to gather ideas for improvement in opportunities to create a better shopping experience for “HER”.

Market Opportunity Analysis: Update the design and layout

on the dressing rooms The plan is to make it more

chic and comfortable feeling Update lighting

Cost effective LED lights Trendy and promote more sales

Trend Concept

Relocate and remodel the current dressing rooms ONE centralized dressing room towards back of store

Extend length of doors/walls Increase room size Add upholstered seating Eliminate carpet Utilize new low- wattage lighting

Online computer system with scanners Two located in new location Touch screen Connected to kohls.com

Recommendations

*Waiting area seating with wall art, labeled sign into the entrance, continuous flooring into the dressing room from the navigable path from throughout the store, doors and walls flushed with floor and up to 7’ high, floor length mirrors, solid wood doors, and in a centralized location.

Store layout

*Layout for the 88,000 sq ft prototype stores.

* Suggested space allocated at least 10% of stores square footage

•*Displays the allocated space for each department area, cash registers, restroom/guest services, the front entrances, the navigable path around the store, and the new remodel plan for the centralized dressing room.

Dressing Room Floor Plan

Insert prototype

Trend Concept Benefits

“Customers who use a fitting room are 71% more likely to buy than those simply browsing the sales floor.”

More space throughout for store display

New feeling of comfort and cleanliness

Better clothing appearance Reduced energy costs Fewer sales lost Increase gross margins Fewer disappointed customers Frequent exposure to Kohls.com

Justification

Place where majority of buying decisions are made

Not on directional map Relatively cramped Place where customers

feel most vulnerable Help maintain a

comfortable home like atmosphere

Help make the buying decision easier

Demographics

Lewisville area: 49.6% males 50.4% females Median income level: $50,000- $74,999

Lewisville and Valley Ranch: Boomtown Singles Young Influentials

Industry Analysis

Industry trends: Use of technology

RFIDs Estimated for 2015, 73% growth of usage by

customers, but only 23% intend to use the technology.

Scanners “Magic Mirror”

Additional space Change ambience

Competitor Analysis

High- end to low- end stores Examples: Nordstrom, Macy’s, TJ Maxx

2007 recession Company’s total revenues topped $17.2

billion in 2009, a 4.8% increase from previous year

Advantages

SWOT Analysis

Strengths Weaknesses

Opportunities Threats

Finance Projections

The Suburban Prototype (88,000 sq. ft) brings in about $16 million in sales. (est. $182 per square foot)

Past Sales 2003 to 2008 there was a

60% increase in sales $10.3 billion to $16.4 billion

In 2008, there was a .5% decrease in sales due to economic recession

Gross Margin Larger margin on clothing Remodeled dressing rooms

lead to more sales

Costs Cut costs on construction Projected remodel time reduced Centralization reduces décor costs

Store remodel budget $3 million Estimated BUDGET TO BE USED

for the remodel is $1.5 million After remodel, sales planned to

continue to grow. Technology bring in additional

sales Additional sales of $100,000 per

store per year, which equals 0.5% of total average store sales of $20 million. Based on 1,000 stores this would equal $100 million.

Adding kiosks increases productivity and customer satisfaction by 90%

Measurable Performance

Objectives Provide a better shopping

experience Reduce remodel cost and

time Continued focus on future Create a centralized area

Goals Clean up merchandise

clutter Introduce technology Environment for the

customers to feel at home

Completed

Remodel

Month 3 Month 2

Month 1Finalize

Remodel

Promotional Strategy

In-store marketing Marketing slogan

“More space for “HER”” Letting Kohl’s customers know about the

new dressing room location and how it will better their shopping experience Asking her to try out the new renovations