There are many choices in planning a business strategy. If you are only limited to market penetration, new market entry, diversification, product or service development, or Blue Ocean Strategy (reconstructing market boundaries), which do you believe is best for this company? Why do you recommend this general strategy?

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Last year, Kohl's was for sale but could not make a deal that satisfied the company's owners. So, now they have decided to make some changes in the business.

Kohl's (NYSE: KSS) is a leading omnichannel retailer. With more than 1,100 stores in 49 states and the online convenience of Kohls.com and the Kohl's App, Kohl's offers amazing national and exclusive brands at incredible savings for families nationwide. Kohl's is uniquely positioned to deliver against its strategy and its vision to be the most trusted retailer of choice for the active and casual lifestyle. Kohl's is committed to progress in its diversity and inclusion pledges, and the company's environmental, social, and corporate governance (ESG) stewardship.

This article from The Street, will provide you with some background of their current strategy.

After Failed Sale, Kohl's Tries Something New In Its Stores

Kohl's is back to trying to bolster traffic in its stores with a new concept.

SARAH JEAN CALLAHAN

JUL 12, 2022 6:52 PM EDT

Higher interest rates, stumbling earnings and a slowing economy have thrown a monkey wrench in retailer Kohl's plans to sell itself, forcing the company to piviot in a new direction.

Kohl's (KSS) - Get Free Report had been shopping for buyers for the department store this spring, as activist investors pushed for the move. The company drew interest from a number of potential buyers before opting to negotiate with the parent company of Vitamin Shoppe.

The frontrunner to purchase Kohl's was Franchise Group Inc. (FRG) - Get Free Report which initially bid $60 a share, or about $8 billion. However, the speedy rise of interest rates and deteriorating economic outlook, made completion of a deal impossible, Kohl's announced on July 1 sending the shares spinning.

With the deal off, Kohl's is back to trying to jazz up its stores and shopping experiences.

While other retailers like Target (TGT) - Get Free Report and Walmart (WMT) - Get Free Report grew their markets. Kohl's didn't work on reinventing its shopping experience as quickly.

Kohl's has looked for ways to get customers in the door, hoping they will in turn stop and shop. Kohl's started to accept and process Amazon (AMZN) - Get Free Report returns to bring customers through the doors. Kohls hoping the convenience of coming to your local store would be greater than that of the UPS (UPS) - Get Free Report storefront.

Kohl's also brought in Sephora cosmetics to entice customers to walk through their doors in 2021. It's no secret that women primarily do the majority of shopping for the home and family, so, working with Sephora was a hopeful way to get more of those shoppers into the store.

Clothing and makeup are two items that are better purchased in person since that makes it easier to touch the fabric and test the makeup for the right colors.

Kohl's Plans a New Shopping Experience

Faced with the continuing challenge of pulling in shoppers, Kohl's said this week it is launching a new shopping program.

The Discover @Kohl's concept will provide shoppers with 30+ new brands, brands by women-owned businesses. The new department will adjust throughout the year, for example the July through October, Discover @ Kohl's will feature Back to School, Get Outside, Fall Family Fun, and For Women By Women.

Kohl's will work to incorporate programs that give back. One such project is the Gorongosa Project in Mozambique, Africa within Gorongosa Coffee Co., which works with the Gorongosa community to bring sustainable solutions to the environment. The coffee company donates 100% of their profits to this cause.

Kohl's will introduce new brand and work to drive inclusivity within their stores. They will carry gender neutral clothing for kids, as they recognize the need for every child to feel seen and to be comfortable in their clothing choices.

For those who love Kohls and their shopping perks. Kohl's will keep their Kohl's Cash, Kohl's Rewards, and use of their Kohl's Card.

So far the plan is not working.

Kohl's Reports Fourth Quarter and Full Year Fiscal 2022 Financial Results

March 01, 2023

Fourth quarter net sales decrease 7.2% and comparable sales decrease 6.6%

Fourth quarter diluted loss per share of ($2.49)

Introduces full year 2023 financial outlook

Committed to strengthening balance sheet, while continuing to return capital to shareholders through the dividend in 2023

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)-- Kohl's Corporation (NYSE:KSS) today reported results for the quarter and year ended January 28, 2023.

Tom Kingsbury, Kohl's chief executive officer, stated, "Kohl's fourth quarter results reflect meaningful proactive measures we took to better position the business for 2023, as well as sales pressure driven by the ongoing persistent inflationary environment. Kohl's has a solid foundation and a highly motivated team with a set of priorities to capitalize on what I see as a substantial opportunity to make a difference in the retail landscape."

Mr. Kingsbury continued, "Our efforts to drive the business are already underway. We are refining our strategy and re-establishing merchandise disciplines with a customer-centric focus across the organization. I am confident that our efforts will drive improved, and more consistent, sales and earnings performance over the long-term."

Fourth Quarter 2022 Results Comparisons refer to the 13-week period ended January 28, 2023 versus the 13-week period ended January 29, 2022

Net sales decreased 7.2% year-over-year, to $5.8 billion, with comparable sales down 6.6%.

Gross margin as a percentage of net sales was 23.0%, a decrease of 1,016 basis points. Clearance markdowns impacted margin by approximately 750 basis points and product cost inflation impacted margin by approximately 200 bps.

Selling, general & administrative (SG&A) expenses decreased 0.6% year-over-year, to $1.7 billion. As a percentage of total revenue, SG&A expenses were 27.9%, an increase of 190 basis points year-over-year.

Operating loss was $302 million compared to operating income of $450 million in the prior year. As a percentage of total revenue, operating loss was 5.0%, a decrease of 1,195 basis points year-over-year.

Net loss was $273 million, or ($2.49) per diluted share. This compares to net income of $299 million, or $2.20 per diluted share in the prior year.

Inventory was $3.2 billion, an increase of 4% year-over-year.

Operating cash flow was $707 million driven by improvements in working capital during the fourth quarter of 2022.

Fiscal Year 2022 Results Comparisons refer to the 52-week period ended January 28, 2023 versus the 52-week period ended January 29, 2022

Net sales decreased 7.1% year-over-year, to $17.2 billion, with comparable sales down 6.6%.

Gross margin as a percentage of net sales was 33.2%, a decrease of 485 basis points.

SG&A expenses increased 2.0% year-over-year, to $5.6 billion. As a percentage of total revenue, SG&A expense was 30.9%, an increase of 268 basis points year-over-year.

Operating income was $246 million compared to $1.7 billion in the prior year. As a percentage of total revenue, operating income was 1.4%, a decrease of 729 basis points year-over-year.

Net loss of $19 million, or ($0.15) per diluted share. This compares to net income of $938 million, or $6.32 per diluted share, and adjusted net income of $1.1 billion, or $7.33 per diluted share, in the prior year.

Operating cash flow was $282 million.

2023 Financial and Capital Allocation Outlook For the full year 2023, the Company currently expects the following:

Net sales: A decrease of (2%) to (4%), includes the impact of the 53rd week which is worth approximately 1% year-over-year.

Operating margin: Approximately 4.0%.

Diluted earnings per share: In the range of $2.10 to $2.70, excluding any non-recurring charges.

Capital Expenditures: $600 million to $650 million, including expansion of its Sephora partnership and store refresh activity.

Dividend: On February 21, 2023, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.50 per share. The dividend is payable March 29, 2023 to shareholders of record at the close of business on March 15, 2023.

Debt Reduction: The Company retired $164 million of bonds that matured in February 2023, and expects to retire $111 million of bonds maturing in December 2023.