HISTORY
1962-1968: Early Years
The first Kohl's department store opened in Brookfield, Wisconsin, in 1962 as a branch of the Kohl's grocery chain, founded by Max Kohl. In the mid-1960s the store positioned itself in between higher-end department stores and discounters. This position helped to later propel Kohl's into a major nationwide chain. By 1972, the chain's association with BATUS Inc., the U.S. division of BAT Industries, began. The parent was formed when the founder, James Buchanan Duke, of the American Tobacco Co., expanded his U.S. tobacco empire to Great Britain. He had invaded on the British market, which sparked a trade war. Later, that trade war provoked several British tobacco companies to form a monopoly but when the U.S. Supreme Court forced the American Tobacco to annul its territorial agreement.
The first Kohl's department store opened in Brookfield, Wisconsin, in 1962 as a branch of the Kohl's grocery chain, founded by Max Kohl. In the mid-1960s the store positioned itself in between higher-end department stores and discounters. This position helped to later propel Kohl's into a major nationwide chain. By 1972, the chain's association with BATUS Inc., the U.S. division of BAT Industries, began. The parent was formed when the founder, James Buchanan Duke, of the American Tobacco Co., expanded his U.S. tobacco empire to Great Britain. He had invaded on the British market, which sparked a trade war. Later, that trade war provoked several British tobacco companies to form a monopoly but when the U.S. Supreme Court forced the American Tobacco to annul its territorial agreement.
1970-1989: BATUS Subsidiary to Private Firm
In the 1970s, the company formed a U.S. subsidiary, BATUS Inc., and began to acquire retail department stores. Kohl's Food and Department Stores was their first acquisition. BATUS took full control of Kohl’s in 1978. By the mid-1980s, BATUS had more than doubled the number of Kohl's department stores to 34, but the chain’s "value-oriented," "bargain-basement" positioning did not fit with BATUS’ other retail holdings. In 1986 a group of investors took the 40 Kohl's department store chain's Wisconsin private.
In the 1970s, the company formed a U.S. subsidiary, BATUS Inc., and began to acquire retail department stores. Kohl's Food and Department Stores was their first acquisition. BATUS took full control of Kohl’s in 1978. By the mid-1980s, BATUS had more than doubled the number of Kohl's department stores to 34, but the chain’s "value-oriented," "bargain-basement" positioning did not fit with BATUS’ other retail holdings. In 1986 a group of investors took the 40 Kohl's department store chain's Wisconsin private.
1990-1999: Expansion, Going Public
In 1992 the Kohl’s Corporation prepared for further growth by expanding and upgrading its distribution facilities, automating merchandise handling, and making a public stock offering to finance the projected openings of 14 to 16 stores annually. Their ten-year-old distribution center, which supplied Kohl's stores with 98 percent of their merchandise, was expanded to 500,000 square feet, enough capacity to service 120 stores. In 1993, their distribution center was finished, encouraging higher productivity and lower turnaround time. It also allowed vendors to send advance ship notices electronically and to pre-ticket merchandise. Construction on more distribution centers were underway in years to follow to expand their geographical reach to eastern states. By 1999, the expansion emphasis was on the West. To support its westward expansion, Kohl's started building a fourth distribution center in Blue Springs, Missouri. On the management side, Kohl’s previous CEO relinquished his position to Larry Montgomery in February 1999.
In 1992 the Kohl’s Corporation prepared for further growth by expanding and upgrading its distribution facilities, automating merchandise handling, and making a public stock offering to finance the projected openings of 14 to 16 stores annually. Their ten-year-old distribution center, which supplied Kohl's stores with 98 percent of their merchandise, was expanded to 500,000 square feet, enough capacity to service 120 stores. In 1993, their distribution center was finished, encouraging higher productivity and lower turnaround time. It also allowed vendors to send advance ship notices electronically and to pre-ticket merchandise. Construction on more distribution centers were underway in years to follow to expand their geographical reach to eastern states. By 1999, the expansion emphasis was on the West. To support its westward expansion, Kohl's started building a fourth distribution center in Blue Springs, Missouri. On the management side, Kohl’s previous CEO relinquished his position to Larry Montgomery in February 1999.
Early 2000s: From Coast to Coast
In 2000 the company opened 60 more stores and entered several new markets, particularly in the Northeast. To support its move into e-commerce, Kohl's opened a 500,000-square-foot fulfillment center in Monroe, Ohio. Revenues jumped 35 percent to reach $6.15 billion and net income increased from $255 million to $367 million. Kohl's opened a fifth distribution center, in Corsicana, Texas to support demand in the southern states. Around this time, Kohl's made an effort to upgrade its brand offerings, they introduced special lines from Jones Apparel Group, Inc., Liz Claiborne, Inc., and children's apparel from OshKosh B'Gosh, Inc. Late in the year, Kohl's opened a distribution center in San Bernardino, California, in advance of a West Coast expansion. In March 2003, stormed into California, opening 28 stores in the Los Angeles area and making Kohl's a coast-to-coast retail chain. As competition heated up, in 2004, Kohl's concentrated on turning its performance around. Kohl's began introducing new merchandise into its store more frequently and moved to secure exclusive brands that could help differentiate them from their competitors. The turnaround efforts began to pay off, as net income was a record $730 million. From the beginning Kohl's has aimed to expand all over the United States through their value-oriented ideals and by continuing to pursue new exclusive merchandise offerings, Kohl’s has done just that.
In 2000 the company opened 60 more stores and entered several new markets, particularly in the Northeast. To support its move into e-commerce, Kohl's opened a 500,000-square-foot fulfillment center in Monroe, Ohio. Revenues jumped 35 percent to reach $6.15 billion and net income increased from $255 million to $367 million. Kohl's opened a fifth distribution center, in Corsicana, Texas to support demand in the southern states. Around this time, Kohl's made an effort to upgrade its brand offerings, they introduced special lines from Jones Apparel Group, Inc., Liz Claiborne, Inc., and children's apparel from OshKosh B'Gosh, Inc. Late in the year, Kohl's opened a distribution center in San Bernardino, California, in advance of a West Coast expansion. In March 2003, stormed into California, opening 28 stores in the Los Angeles area and making Kohl's a coast-to-coast retail chain. As competition heated up, in 2004, Kohl's concentrated on turning its performance around. Kohl's began introducing new merchandise into its store more frequently and moved to secure exclusive brands that could help differentiate them from their competitors. The turnaround efforts began to pay off, as net income was a record $730 million. From the beginning Kohl's has aimed to expand all over the United States through their value-oriented ideals and by continuing to pursue new exclusive merchandise offerings, Kohl’s has done just that.