Explore BrainMass

Kohl's Department store's operations are a competitive value

Need Data to determine what part of Kohl's Department store's operations provides competitive value.

List 4-5 data items to prove that their operations is something that supports their value as a competitor. Provide numbers to prove it, if possible.

Attached is the annual 10k report you may draw the data from. It is the most reliable source for this issue.
However, you may use outside resources, but be sure to supply the reference.


Solution Preview

In reviewing Kohl's 10-K, I found several data points in the executive summary:

1. "Total net sales for 2007 were $16.5 billion, a 5.6% increase over 2006." While this may be true, Kohl's opened 112 new stores which probably explains all of the sales increase. Still opening new stores is a good thing because it does show growth.

2. "Accessories reported the strongest comparable store sales with strength in beauty and jewelry." All three of those types of items are high markup and if a store wants to show strength, this is a good way to do it.

3. "On September 28, 2007, we issued $1 billion of long-term debt...". In reviewing the liability section of the balance sheet, it appears that Kohl's restructured much of its short term debt to long term. That fact helps them to be in a better position to face the ...

Solution Summary

The 560 word solution presents seven data points taken from the annual executive summary to demonstrate competitive value. Each of the points is futher explained. Next a comparison is drawn to Target stores.