Kohl's Gets It Right

The company's stores also came out near the top in questions asking which stores the women shopped at most recently, as well as which ones the women expected to shop at in the near future.

Kohl's inventory management also is winning rave reviews on Wall Street and should continue to boost profits and cash flow.

The company is implementing a markdown optimization system that is credited with helping boost gross margin by 90 basis points in 2006. Lehman Brothers analyst Robert Drbul believes the company is well ahead of its 2010 operating margin goal of 12.5%, considering the 11.7% figure posted for 2006. Lehman has a non-investment banking business relationship with Kohl's.

Don't look around your local mall for Kohl's. The company typically is located in its own big box store, where rents are cheaper. This lower expense gives the company a leg up on competition in regards to margin and ability to pass savings on to the customer.

Getting It Right Tomorrow

If the women in Retail Intelligence Group's survey liked what they've seen recently at Kohl's, they'll probably have even more reason to return to the stores in the coming year.

Kohl's is bringing in several exclusive brands in 2007. In women's apparel, the company will have brands from designer Vera Wang and Elle magazine. The retailer also will introduce Polo Ralph Lauren's (RL Quote) Chaps brand in several categories, including girl's apparel and home goods.