Shopper Puts Kohl’s to the Test By SHELLY GARCIA Senior Reporter Amid all the hype concerning the entry of Kohl’s department stores into Los Angeles earlier this month, West Hills resident Susan Oberman decided to see for herself what all the commotion was about. All the media reports about whether the Southern California retail newcomer was going to obliterate the competition such as Mervyn’s, Robinsons-May and Macy’s didn’t matter. This was a new place to shop, and she had to check it out. But this time, she had a reporter from the Business Journal along to record her every move. Would Kohl’s pass the shopping test? She’d go to the Kohl’s in Fallbrook Center. The store is right next to a Mervyn’s, considered its prime competitor. As she enters the new store, one of the first things to grab her attention is the staggering assortment of merchandise, some of which hangs more than 10 feet high on the store’s walls. “My first impression is they’re very well stocked, and they have a very good color selection and it’s easy to find stuff,” said Oberman, an independent paralegal who works in Warner Center. “My first negative is who the hell is going to reach up there.” Apparently, many others shared Oberman’s positive opinion. “It was far and away the most successful opening in Kohl’s history,” said Mike McMullen, district manager who oversees seven of the company’s Southern California stores, including the Fallbrook location. All 28 of the retailer’s area stores were opened on the same day. Kohl’s, which operates a total of 420 stores, has garnered an enviable track record of earnings and revenues growth, based largely on its formula of huge selections of brand name merchandise at prices competitive not only with department store retailers but other off-price retailers as well. As Oberman moves through the store she sees many other similarities as well. The men’s sportswear section reminds her of Mervyn’s. Housewares has the types of things she typically shops for at Target. Women’s ready-to-wear includes many of the brands Oberman buys at Robinsons-May and Macy’s. Some departments, like handbags, seem downright unrivaled, she said. She picks one off the shelf for closer inspection. “This is a great purse,” Oberman says of a Rosetti handbag on sale for $15. “$25 would be a good sale price at Robinsons-May.” In ready-to-wear she spies many of the same labels she buys at Robinsons-May and Macy’s, at prices she said compared favorably to those at the department stores. A velour pant and hooded jacket set by Gloria Vanderbilt was marked at 33 percent off. “It’s a good price, and it’s a good brand,” Oberman said. A Sag Harbor outfit, like the kind she typically buys at department stores is marked down to $36, “a good price.” And even the regular price of $28 for a California Krush skirt “isn’t bad,” Oberman said, although the skirt was marked down to $16.80 for the store’s opening. “Their sale prices are good prices,” Oberman said. “But how long will this sale be on? I just think most regular prices are ridiculous.” Large volume With most retailers offering sales on a regular basis, though, Oberman is as interested in the store’s other features, and it is the sheer volume of merchandise that most impresses her. Department stores carry numerous styles of, say, pants or blouses, but they are likely to have limited colors and sizes available for each style. Kohl’s stores, which are typically half the size of an average department store, carry fewer styles, but its size and color selections for each style it does carry is far more extensive. “So what you’ll find is a narrower, deeper assortment, which allows the customer to find better in-stock positions,” said David Yamamoto, a retail analyst at Wedbush Morgan Securities in San Francisco. “And management’s goal is to be 100 percent in stock on sale items in size and color.” What that translates to for Oberman the shopper is an appeal she says is lacking even in the department stores she frequents. “I don’t remember department stores having this many colors for the same thing,” said Oberman as she made her way toward a display of coordinated women’s shells and cardigans. “It’s very well coordinated. You can envision it. You can’t get to it, but you can see it,” she said with a chuckle.” Indeed, the large assortments and displays are not without their problems. At 5-feet, 2-inches tall, Oberman can’t reach the top of many of the displays without the help of shepherd hooks, a long pole with a hook at the end, and at the store’s opening, there were not enough of the hooks available. “We absolutely will take a look at that,” McMullen said of the scarcity of hooks. “Those hooks should be readily available in all departments.” One customer took to carrying one of the precious shepherd hooks with her as she wound her way through the store. “I asked her if I could help her, but she didn’t want to let it go,” said Hermalinda, a Kohl’s sales associate. Oberman finds a hook and successfully snags a pair of men’s shorts hanging near the ceiling. “I caught a fish,” she said gleefully. “I’m going into the Olympics for pants hanging.” Kohl’s also provides call buttons in some departments that can be used to summon a sales clerk, but department store competitors are hoping that the self-service orientation of the store will help to keep their customers from straying to the new competition. Rivals respond “It’s given us a chance to focus on what we know we do really well, which is customer service,” said Milinda Martin, a spokeswoman for Robinsons-May’s Western headquarters in North Hollywood. “I think we’re known for our brand names and private label and our home store. I think it’s given us a chance to look at those areas and know that that’s where we differentiate ourselves.” Mervyn’s sees its greatest advantage in its history in California. “We’ve been in operation since 1949, over five decades, and so we believe we know California better than anyone else,” said Greg Terk, a spokesman for the Hayward, Calif.-based retailer. “We’re familiar with the trends from Northern Calfiornia to Southern California, from mountain to beach, and we do a really good job of listening to our guests and providing them with the service and products and events they’re looking for.” Kohl’s did not come to California with a cookie-cutter approach to its assortments, McMullen said. The company put its shorts front and center in the men’s department, and it paid special attention to its assortments for teens and pre-teens, where tastes can differ markedly from the rest of the country. “The response to juniors was the strongest we’d seen,” said McMullen. “That was something we were most pleased about because we had assorted it for California so much.” What does that mean for shoppers? Midway through her shopping excursion Oberman gets a call from a co-worker who wants to know if she should make the trip to the store on her lunch break. “It’s kind of fun,” Oberman tells her. “I think you’d have fun here.”