Kohls

669 Words Feb 21st, 2015 3 Pages
Kohl’s Pricing and Retail Strategy Kohl’s opened their first department store in 1962 Brookfield, Wisconsin a spinoff of the Kohl’s Grocery chain which was founded in Milwaukee, Wisconsin in the late 1920s. Kohl’s has grown to over 730 stores in 41 states. (Reference for Business, 2005)
Retail Strategy
Kohl’s operates as a discount department store offering name brand products with discounted pricing. Targeting middle income families, Kohl’s retail stores average 86,500 square feet in size and are located in shopping malls as well as freestanding marketplaces. The retailer also has an online presence at Kohls.com. (Reference for Business, 2005) Kohl’s uses a variety of different venues to advertise and promote its products
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The consumer would then look at the top of the product display and find the line with the 69.99 price to gain the 39.99 actual sales price of the product.
Customers never expect to pay the retail price on any product in the store; this creates an everyday low priced environment. Kohl’s shoppers are value minded and the pricing strategy creates a feeling of end to end savings throughout the store.
Kohl’s pricing strategy has been the subject of illegal and ethical quandaries. Many opponents state that Kohl’s provides inflated deceptive reference prices. In 2013 a San Francisco appeals court permitted a lawsuit stating that the retailer falsely advertised sales pricing. (Los Angeles Times, 2013) Kohl’s appealed, only to lose as California courts permitted the lawsuits over the alleged false markdowns. While highly controversial other retailers have adopted a very resembling pricing model. In 2013 JCPenny implanted the Kohl’s sales strategies in its stores in an effort to revamp its struggling sales numbers. (Time 2013)
Conclusion
As other retailers such as sears and JCPenny are struggling, Kohl’s (KSS) stock price is at an all-time high, currently trading at just under 70.00 per share. The future of Kohl’s seems bright as the retailer looks to have the recipe for success.

References
Grewal, D. & Levy, M (2014). Marketing.(4th ed.). New York, NY; McGraw-Hill-Irwin
Kohl’s (2014), Kohl’s Cash.
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