Kohl's E-commerce Success Gains with Investment, Britney

Kohl’s enjoyed a 48% leap in Internet sales in 2008, it revealed in its 2009 annual report filing with the U.S. Securities and Exchange Commission, joining Macy’s and Saks among retailers who have seen online success despite the recession.

In total, Kohl’s booked electronic commerce sales of $356 million last year, or about two percent of the $16.4 billion in total revenues it posted.

Candie's and Kohl's are linking Britney Spears into their online marketing.

In 2007, e-commerce sales were $240.5 million up 30.9% from 2006 and representing a bit over one percent of total revenues of $16.5 billion.

By point of comparison, the $356 million is the equivalent of sales generated by 21 stores out of the total 1,004 Kohl’s operated at the end of fiscal ’08. So the company’s Internet business is a relatively small operation right now but growing rapidly and with considerably fewer start up costs than come with building new stores.

Still, Kohl’s has been investing to grow its e-commerce business in recent years. In 2007, it expanded a distribution center dedicated to online sales by 400,000 square feet. The warehouse, in Monroe, Ohio, now measures out at 940,000 square feet.

On the marketing side, Kohl’s struck deals with AOL, MSN and Yahoo for the holiday season that included eight home page takeovers, with the first promoting a pre-Thanksgiving sales event. Immediately after Thanksgiving, in another initiative, Kohl’s launched a 50 percent off toy sale that included a range of online exclusives.

Kohl’s continues to promote online shopping with a Deal of the Day feature on its web site home page offering Internet only discounts and with occasional free shipping deals. Not only that, but it lets those customers who might be interested watch its television commercials online.

The web also figures into its deal with Candie’s, a junior’s apparel brand Kohl’s carries exclusively. The brand’s management recently announced it had signed Britney Spears as its 2009 Candie’s girl and dedicated the Candie’s web site home page to her. Page content now includes a behind the scenes video looking at preparations for Spears latest tour and a “only at Kohl’s” click through that provides a link to the retailer’s Candie’s collection.