It also has equally impressive house brands that are price competitive. These give variety to the product lines that the department store carries.
One of the company’s strengths is that Kohl has a very wide distribution network, with nine distribution centers located in strategic areas. This enables the company to immediately replenish stocks in the stores. Immediate replenishment means there will be minimal lost sales due to non-availability of the products. Having a lot of distribution centers also results to manageable operations costs resulting from having to bring the products from one area to another.
However, Kohl’s main weakness is its company size compared to the industry’s larger players. Kohl only has about 1000 stores located in various parts of the US. Furthermore, its area of distribution is only within the US, whereas other Retail stores have reached other countries. As such, Kohl is very dependent on the economic condition of the US.
Kohl has the ability to compete heads on with the larger players as it continues to expand, with the target of having 1,400 stores in 2012 (Economy Disrupts Kohl’s Expansion 2009). In spite of the economic downturn, slowing the company’s expansion from its target of 90 new stores per year to only 75, the company is still confident on its expansion plans. And alongside the expansion plans is their innovative marketing plans, among which is the company’s shopping strategy tool, whereby consumers can create and print customized shopping lists that has product images and pricing so that they can compare values and get the most out of their money (Kohl’s Shoppers Can Count on Tremendous After Thanksgiving Day Savings 2009).
Another opportunity is that Kohl is now also maximizing online shopping, as the other retailers in the same league. Doing so would attract more consumers, and connecting them on a personal level as the website offers detailed