Kohl’s To Open New Distribution Center To Support E-Commerce Growth

Kohl’s Department Stores (NYSE: KSS) has entered into a purchase agreement to build a new e-commerce distribution center located at I-35 and Centre Park Blvd. in DeSoto, Texas. Expected to open in summer 2012, upon completion the approximately 951,000 square-foot building will fulfill Kohls.com purchases. Kohl’s will close on the agreement once the building process is complete. As part of the company’s continued growth, the site was selected for its proximity which will enable the company to better serve Kohls.com’s Central and Midwest customer base.

“We are committed to delivering on our promise to ‘expect great things.’ This new facility will ensure that Kohl’s is able to accommodate the tremendous growth of our Kohls.com business,” said Ken Bonning, Kohl’s executive vice president of store planning and logistics. “We currently operate 84 stores in Texas, and are pleased to expand our presence with this new facility. We anticipate creating approximately 400 jobs for the community in a phased approach over the next 3 years.

The new facility will serve as a fulfillment site for Kohls.com purchases. Kohl’s has experienced more than a 50 percent e-commerce sales increase in 2010, and expects sales on Kohls.com to reach $1 billion this fiscal year. Upon the opening of the new DeSoto, Texas facility, Kohl’s will operate a total of 13 distribution centers across the country. This is the company’s fourth distribution center dedicated to serving Kohls.com customers -- other centers are located in San Bernardino, Calif.; Monroe, Ohio and Edgewood, Md.

External hiring will begin March 1, offering hourly and management positions. Kohl’s expects to hire more than 200 full time associates when the facility opens in summer 2012. Once operating at full capacity, Kohl’s expects to employ approximately 400 full and part-time associates at this location. Applicants interested in career opportunities are encouraged to visit Kohlscareers.com for more information and a list of available positions.

Kohl’s Commitment to Customers

At Kohl’s, it’s not just what customers save, it’s about what they get. Every day Kohl’s provides customers with quality, world-class national and exclusive brands, unique savings tools, unbeatable policies, customer conveniences, Kohl's Cares cause program and a commitment to environmental responsibility.

Kohl’s commitment to customers has been recognized by the National Retail Federation* for the past seven consecutive years on its list of retailers that offer the best customer service. In addition, Kohl’s has ranked among the top retailers in the University of Michigan’s** customer satisfaction survey for nine consecutive years, including ranking number one among mid-tier department stores in 2010. In addition, Kohl’s was recently ranked by Forbes and the Reputation Institute as the most reputable department store on their annual list of the Most Reputable Companies.

Kohl’s Cares® – Community and Environmental Commitment

Kohl’s cares and strives to be an active member in the cities and towns where we do business. Through charitable giving and volunteer programs for kids’ health and education and environmental initiatives, Kohl’s is making communities happier, healthier, greener places to live and work. Kohl’s supports local communities through its Kohl’s Cares ® philanthropic programs which include:
  • Kohl’s Cares Cause Merchandise Program – Throughout the year, Kohl’s sells kid-friendly cause merchandise, with 100 percent of the net profit donated to support children’s health and education initiatives in communities nationwide. To date, more than $180 million has been raised through the Kohl's Cares cause merchandise program.
  • Kohl’s Cares Associates in Action Program – Kohl’s associates make a difference by volunteering in their communities and partnering with qualified nonprofits. More than 400,000 associates have donated more than 1.3 million hours of their time since 2001 and Kohl’s has donated more than $38 million to nonprofits throughout the nation.
  • Kohl’s Cares Scholarship Program – Kohl’s also recognizes and rewards youth volunteers. Since 2001 Kohl’s awarded more than $3 million in scholarships and prizes to more than 15,000 youth volunteers through our Kohl’s scholarship program. In 2011, Kohl’s awarded nearly $420,000 in scholarships and prizes to nearly 2,200 kids nationwide.
  • Kohl’s Cares Fundraising Gift Card Program – Kohl’s has also raised more than $32 million for youth organizations through fundraising gift cards.
  • Kohl’s Cares Advancing Environmental Solutions – Kohl’s is committed to being a leading environmentally responsible retailer and to protecting and conserving the environment. Some of our primary sustainability initiatives include: the environmentally responsible design, construction and operation of our buildings; a comprehensive recycling program; a commitment to energy efficiency and the use and support of green power, such as solar.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 including guidance on the Company's targeted sales and earnings. Kohl's intends forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans," or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause Kohl's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, those described in Item 1A in Kohl's Annual Report on Form 10-K, which is expressly incorporated herein by reference, and other factors as may periodically be described in Kohl's filings with the SEC.

About Kohl’s Department Stores

Based in Menomonee Falls, Wis., Kohl’s (NYSE: KSS) is a family-focused, value-oriented specialty department store offering moderately priced, exclusive and national brand apparel, shoes, accessories, beauty and home products in an exciting shopping environment. With a commitment to environmental leadership, Kohl’s operates 1,127 stores in 49 states. In support of the communities it serves, Kohl’s has raised more than $180 million for children’s initiatives nationwide through its Kohl’s Cares® cause merchandise program, which operates under Kohl's Cares, LLC, a wholly-owned subsidiary of Kohl's Department Stores, Inc. For a list of store locations and information, or for the added convenience of shopping online, visit www.Kohls.com.

*The NRF Foundation (NRFF) is the research and education arm of the National Retail Federation. A non-profit foundation created in 1981, the Foundation conducts industry research, develops education and workforce development programs, professional certification programs and promotes retailing as a career destination.

**The National Quality Research Center (NQRC) at the University of Michigan Business School is a research and teaching center focusing on the measurement of customer satisfaction and the study of its relationships to quality, customer retention, profitability and productivity for private and public sector organizations, for specific industries and for national economies.

Copyright Business Wire 2010

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