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Kohl’s SWOT & PESTLE Analysis

ID : 52338453| Jan 2018


Business Sector :Retail

Operating Geography :North America, USA

About Kohl's :

Kohl’s Corporation, or simply Kohl’s, is an American publicly traded, departmental retail store chain founded on 12th September, 1962 in Milwaukee, United States. It is America’s largest departmental retail store chain operating more than 1100 stores across 49 states and generating an annual sales of approximately USD 18 billion. As of January, 2017 it had close to 138000 full-time and part-time associates. It offers apparel, footwear, accessories for men, women and children as well as home products and home wares. It offers a mix of private label and exclusive brands as well as national brands.

Kohl's Revenue :

$ 18686 million – 2016

Competitive Analysis of Kohl's

The SWOT analysis for Kohl's is presented below:
1. Strong Merchandising
2. Strong Brand Equity
3. Strong Distribution Network
4. Bargaining Power over Vendors
1. Minimal Global Presence
2. Seasonality
1. Potential in Online Markets
2. Potential in Emerging Economies
1. Change in Government Policies
2. Increased Competition
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Detailed SWOT Analysis of Kohl's



1. Strong Merchandising: Kohl’s stores have a fairly consistent assortment of merchandise across its stores which helps in maintaining a standard among the customers. Also the wide range of products offered at the stores ranging from national labels to private and exclusive labels helps in increasing sales. Its private brands such as Apt. 9, Croft & Barrow etc. are well-known and established in the US market. Also it targets the middle-income segment customers with housewares and home products which forms a core business segment for them.

2. Strong Brand Equity: Having being in operation for more than 50 years, Kohl’s enjoys a great amount of trust and loyalty among its customers. This loyalty has made Kohl’s into the number 1 retailer in US of many national brands such as Levi’s, Columbia etc. Their focus on creating personalized connections with their customers serves as a key competitive advantage which helps in retaining their existing customers as well as win new customers.

3. Strong Distribution Network: Kohl’s enjoys a strong distribution network spread across the length and breadth of US which helps it in maintaining inventory and easy shipping and delivery. It has 9 retail distribution centres which help in easy shipping of inventory to the retail stores several times in a week. All the stores of Kohl’s are equipped to ship online orders which helps in reducing distribution costs. It also has 5 online-fulfilment centres which are dedicated to shipping online orders.

4. Bargaining Power over Vendors: Kohl’s has employed a distributive property over its vendors due to which it is not strategically dependent on any single supplier. During the fiscal year of 2016, none of its vendors individually accounted for more than 5% of its net purchases in that year. This reduces the dependency as well as the bargaining power of the vendors. Also Kohl’s has a strong Terms of Engagement policy which covers various environmental, ethical, compliance and employment laws and vendors are expected to follow these terms meticulously to continue relationship with Kohl’s. In this way Kohl’s is also promoting sustainability.


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1. Change in Government Policies: Any change in government policy such as taxation, interest rates, political situations etc. can directly affect the consumer spending levels, which can cause a dent in the revenue stream of the company. Majority of merchandise for the company, outside of US, is sourced from Asia. Any change in government policies or trade relations can directly impact the business of the company since that would affect the supply chain operations of the company.

2. Increased Competition: Kohl’s has been facing increasing competition both in B&M stores as well as online channel. The advent of new players has diminished the market share of Kohl’s. Style, quality and price are 3 major competitive factors in the apparel industry and Kohl’s is facing increasing competition due to change in customers’ tastes and preferences in all the 3 categories. Stores like Zara, H&M etc. are offering trending products in the markets, in sync with the changing tastes and preferences at competitive prices which is eating into the market share of Kohl’s.

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Copyrights and Disclaimer

Kohl's SWOT and PESTLE analysis has been conducted by Mrinal Ojhaand reviewed by senior analysts from Barakaat Consulting - an Ezzi IT and Business Consulting venture.

Copyright of Kohl's SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

Kohl’s SWOT & PESTLE Analysis
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