KOHL'S CUSTOMERS LOVE THEIR PLAIN VANILLA

Implications: Kohl's continues to give the customer what she wants, and she  says "thank you" by driving 12-month comp sales to well above 5%, dwarfing the results of midline competitors.

Customers appreciate the simple amenities such as: parking spaces that are always close to the front door; wide, shiny aisles; generally straightforward promotions; a predictable marketing calendar; colorful cuts with laconic copy; appropriate seasonality; assortments that are fresh and infused with some jive,  and a few desired moderate brands that KSS does better than competitors (e.g., Briggs, Sag Harbor, Notations).

A recent tour of a productive midwest  KSS door that I previously shopped regularly--before a 12 month hiatus--truly surprised me: specific merchandise offerings aside, the store, well trafficked as usual,  was unchanged.
 
It all adds up to convenience! 

Analysis: Kohl's and JC Penney are fierce competitors that, as I have previously called out, track each other closely. Both companies are introducing significant developments,  and they are at the forefront as other key players follow suit and energize the business. This is one of those win-win games for customers: better shopping, better pricing, in-store theater for all.

Kohl's is aggressively launching new product introductions that include: Elle inspired apparel (300 doors in Spring '07), Vanessa Minnillo for Flirt in cosmetics (Fall '07), Tony Hawk footwear (Spring '07), Vera Wang (Very Vera in apparel/accessories and home textiles, beginning in Fall '07), Food Network ('07), Chaps home (May '07),  further development of Casa Cristina in select markets. In addition, there is the New York design office and enhancements to the headquarters campus. Some of these developments will be worked successfully into the assortments, as Chaps has been; others will probably fade away.

What appears to be a given is that the learnings-driven KSS team will hang on to what it does best--offering convenience to the customer.