Kohl’s SWOT & PESTLE Analysis

Strength

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-fulfillment centres which are dedicated to shipping online orders.

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Weakness

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Opportunity

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Threat

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Political

1. Regulations and Policies of Trump Administration: The majority of merchandise for Kohl’s, outside of US, is sourced from Asian countries. The trade policies and regulations put in place by the current US government such as disallowance of tax deductions, imposition of unilateral tariffs etc. can have a detrimental effect on the vendor relationships of Kohl’s. This can result in a delay in sourcing merchandise in a time and cost-effective manner. This would not only increase the acquisition cost of the products but also affect the demand and in turn the sales at the stores.

2. Effect on Consumer Spending due to Government Policies: A large consumer base of Kohl’s is the middle-income group which is highly susceptible to changes in government policies. Uncertain economic conditions and slowdown in the US economy are of chief concern to Kohl’s since they directly affect the consumer spending habits, forcing customers to save more, and spend less thereby leading to a decrease in revenue.

Economic

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Social

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Technological

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Legal

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Environmental

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