Kohls Business Model

In order to provide a specific analysis of the department store, Kohl’s, I read an article that provided a business analysis which included their strengths, weaknesses, opportunities and threats. I chose Kohl’s because I shop at the retail store and am fascinated by the constant communications from them and often wonder why their clearance racks are always so full. I wondered if their business model can be changed in order to look at the supply and demand of their merchandise.

Kohl’s understands that customers respond to incentives because they continuously provide deals and discounts to shop at their store. Kohl’s is aware that there is competition for business and what types of products they need to provide in order to have their customers

The Gap derived 21% of its revenues from non-US regions (6% from Canada and 15% from other foreign countries) in the financial year ended January 2013. Sears Holdings, which operates in the US and Canada, derived 10.8% of its revenue from the Canadian market during the same period. Diversified business operations allow these companies to reduce their business risk by limiting exposure to fluctuations in economic factors in a particular region. (Kohl's Corporation SWOT Analysis, 2014, p. 6)

The appearance of the store that gets a customer to want to shop in the store is a valuable tool. Are the employees friendly? If employees are treated well, they will in turn provide great customer service as well as bring new customers in to shop. Is the flow of the store cohesive to a good shopping experience? A customer gives up time in order to shop, is Kohl’s the store that a customer wants to go to? These are all management issues that would need to be looked into in order to find ways of improving.

Kohl’s is keeping their customers shopping by providing

Since the ratio is improving, it is fair to say that Kohl’s Corp is improving in their ability concerning their total liabilities. The Operating cash flow to total debt is improving since 2013 and is on an upward trend. According to Kohl’s Corporation on their 10K reporting for the last fiscal year, “our gross margin may not be comparable with that of other retailers because we include distribution center costs in selling, general and administrative expenses while other retailers may include these expenses in cost of merchandise sold.” (United States Securities and Exchange Commission, 2013)

According to CSI Market:

Kohl’s Revenue per employee fell on trailing twelve month basis to $ 137,971 but remained above company average. Within the retail sector 32 other companies have achieved higher receivable turnover ratio. While revenue per employee total ranking has improved so far to 504, from total ranking in previous quarter at 521. Kohl’s has 137,000 employees. (CSI Market, Inc,