Kohl’s Department Stores (NYSE: KSS) today announced its 2008 holiday marketing campaign designed to showcase Kohl’s as the one-stop destination for shoppers looking to get the most for their money during a challenging economic environment. Throughout the campaign, brightly wrapped boxes, memorable taglines and easy-to-spot visual cues like ‘Gifts That Fit Your Budget Beautifully,’ ‘It Gift,’ and ‘Present Perfect’ highlight inspiring gifts at great prices. Beginning in November, shoppers can spend smart through frequent sales events, aggressive discounts on popular merchandise earlier in the season and an easy online shopping experience that combine to make Kohl’s this season’s gift destination.

“Our entire holiday program is designed to help customers stretch their budget during an especially difficult holiday season,” said Kevin Mansell, president and CEO for Kohl’s Department Stores. “This year, Kohl’s will prove to be the one stop holiday shopping destination for great gift items. Shoppers will be delighted by the unbelievable prices we’re extending earlier and longer throughout the season. Not only can Kohl’s customers expect significant savings, but they can shop with confidence, knowing their purchases are backed by one of the best return policies in the industry.”

National Holiday Campaign

“At Kohl’s we believe the holidays don’t have to be expensive to be meaningful, and this philosophy has never been more relevant given the economic downturn,” said Julie Gardner executive vice president and chief marketing officer for Kohl’s Department Stores. “We have increased our overall marketing budget –compared with last year and have strategically invested in new promotions, aggressive consumer incentives and have optimized our lead traffic driving promotional events. I am confident Kohl’s will be at the forefront as the consumer looks to make purchasing decisions that will help them make their money go further.”

The company will launch a comprehensive marketing program showcasing its compelling merchandise and tremendous values through a variety of marketing mediums such as broadcast and print advertising, digital media, charge card promotions, direct mail, e-mail outreach and public relations. The company will also employ a national Hispanic marketing program.

The company has increased its investment in best performing mediums such as direct mail, digital advertising and e-mail while at the same time focusing television and radio to align with the largest traffic opportunities. Additionally, the company will take advantage of the three weekends leading up to a late Thanksgiving holiday, infusing one more additional promotion event and additional consumer incentives.

Television and Radio

The campaign’s value and gift-centric message strategy appeals to budget and style-savvy consumers who want to maximize their budgets while enjoying everything the season offers – from gift giving to decorating to entertaining. Kohl’s distinctive merchandise including private and exclusive brands like Simply Vera Vera Wang, ELLE Contemporary Collection, Abbey Dawn designed by Avril Lavigne, apt. 9, and Food Network™ make Kohl’s the ‘go to’ store for an affordable holiday.

To engage customers and highlight Kohl’s exclusive brands, Kohl’s brand television campaign will feature three 30-second brand spots, compared with two last year. The first spot will run on Monday, Nov. 3, and during the first week it will air simultaneously across all network stations during Thursday 9:00 p.m. (EST) ‘must see TV’ such as Grey’s Anatomy, CSI and The Office. The spots, which will cascade on air throughout the season, will also run across popular cable networks like Food Network, HGTV, Lifetime and E!

All three spots include an adaptation of the song Beautiful Things and convey the magic of the season.

The first spot focuses on preparing family for the holidays while a second brand spot highlights special gifts of the season and includes a holiday value message. Both spots feature brands exclusive to Kohl’s, with brand names magically appearing in the scenes. Featured brands include Simply Vera Vera Wang, ELLE Contemporary Collection, apt. 9, daisy fuentes, Candies, Chaps, Tony Hawk, Jumping Beans and Food Network™.

The artists from La Nouba™ by Cirque du Soleil® in Orlando take center stage in the third spot, which highlights Kohl’s as a special gift destination. The art and magical moment of gift giving from Kohl’s is brought to life as the La Nouba™ characters help a young boy choose the perfect present for his mom.

Television and radio will continue to support Kohl’s key sales events, with maximum support for weekend versus mid-week events.

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Nov. 7 to 8 – More Than Double the Savings Offers From Last Year

Kohl’s kicks-off the shopping season and makes it easy for consumers to extend their shopping dollars with compelling new merchandise and sharp reductions both in store and online. More than double the savings offers from last year will be available to customers, and special Power Hours will feature even further reductions. Customers with a Kohl’s charge card will be able to take an additional 15, 20 or 30 percent off their purchases.

Friday, Nov. 7

• Extended Store Hours: 8 a.m. to Midnight
• Power Hours: 3 p.m. to Midnight

Saturday, Nov. 8

• Extended Store Hours: 6 a.m. to 11 p.m.
• Power Hours: 6 a.m. to 1 p.m.

Examples of exceptional values include (Images will be included):

• One-quarter carat diamond solitaire earrings in 14 carat gold: $77.99 final price; regularly $250.
• Playwear on brands including Carter’s, Healthtex and OSHKOSH; for girls sizes 4 to 6x, boys sizes 4 to 7 and toddlers – entire stock: 55 percent off, $5.40 to $15.30, originally $12 to $34.
• apt. 9 Sportswear for misses, petites and women – entire stock: 50 to 60 percent off, $7.99 to $49.99; originally $20 to $100. This is the first time Kohl’s will offer savings this aggressive across the entire brand.
• Chaps sweaters for men – entire stock: 50 percent off, $22.50 to $39.75; originally $45 to $79.50. This is the first time Kohl’s will advertise Chaps sweaters at this price.

Nov. 14 to 15 – Everything is on Sale – Every Brand, Every Product for the Entire Family and Home

Kohl’s continues to establish itself as the place for incredible values this holiday season when everything in the store goes on sale. Customers who shop during Power Hours will find even more great deals on desirable merchandise and can expect to find savings on substantially more items than last year.

Friday, Nov. 14

• Extended Store Hours: 8 a.m. to Midnight
• Power Hours: 3 p.m. to Midnight

Saturday, Nov. 15

• Extended Store Hours: 6 a.m. to Midnight.
• Power Hours: 6 a.m. to 1 p.m.

Examples of special Power Hours pricing include:

• One-quarter carat diamond jewelry in 10 carat gold: $109.99 final price; regularly $375
• Selected fine jewelry will be up to 66 percent off
• Pandigital 7-inch digital picture frame: $59.99 after a $20 mail-in rebate; regularly $159.99. This reflects a $25 savings from last year’s lowest price.
• Toys including brands like Fisher-Price, Playskool, Tonka, Little Tikes and Mattel – entire stock: Additional 20 percent off of entire stock of toys already reduced by 10 to 40 percent. This offer excludes Kohls.com online exclusives.
• Chaps Collection (selected styles) for misses, petites and women: 50 to 60 percent off, $17.25 to $39.75; originally $34.50 to $79.50.

Nov. 21 to 22 – Save Big Before Thanksgiving

New this year, Kohl’s is offering shoppers a third weekend of aggressive savings opportunities throughout the entire store. Over the course of two days – and offered throughout the entire day – customers can take advantage of unbelievable savings.

Store Hours:

• Friday, Nov. 21: 8 a.m. to Midnight
• Saturday, Nov. 22: 6 a.m. to Midnight

Event highlights will include:

• One-tenth carat diamond jewelry set in ten carat gold: $79.99; regularly $250
• Nextar Q4 GPS – 4.3-inch screen, including car and wall charger and car stand: $124.99 after $20 mail-in rebate; regularly $299.99
• daisy fuentes for misses, petites and women – entire stock: 40 to 60 percent off, $10.80 to $38.40, originally $18 to $68.
• 1 GB MP3 player – includes 50 free music downloads, built-in rechargeable lithium battery and earphones: $24.99; regularly $69.99.

Digital

As Kohls.com continues to grow significantly and consumers leverage the internet for holiday research, Kohl’s continues to increase its investment in digital advertising. This season, Kohl’s will again employ an aggressive strategy and take over the home pages of popular online sites including AOL, MSN and Yahoo! Kohl’s has eight takeovers planned throughout the holiday season with the first promoting a pre-Thanksgiving sale event.

Charge Card Promotions/Direct Mail

Despite the economic environment, Kohl’s charge card file and sales continue to experience strong growth due to the incredible value and significant savings opportunities that Kohl’s offers its charge card customers. Kohl’s will increase its promotions and offer charge customers 23 special savings days this year, considerably more than last year.

Kohl’s will also extend charge card customers two total pick-a-day savings offers in both November and December, as compared with one provided last year. New this year, Kohl’s charge card customers, as well as other selected Kohl’s shoppers, will receive a two-day shopping pass that will provide additional discounts during November and December. Also new this year, selected Kohl’s charge customers will receive a Gift Guide highlighting December values and popular gifts at tremendous deals.

E-mail Alerts

After experiencing significant growth of its online database, Kohl’s will more than double the amount of e-mail it sends customers throughout the season. Customers who opt in to Kohl’s e-mail alerts will receive e-mails filled with great gift ideas, sneak peeks at upcoming sales, additional discount opportunities, shipping offers and more.

Targeted Hispanic Outreach

Given the considerable size and purchasing power of the Hispanic market, Kohl’s continues to broaden its outreach to this demographic with messages that convey early, frequent and significant discounts. A brand television spot specifically created for the Hispanic market will begin airing nationally the second week of November during popular shows like Despierta América, Doña Bárbara, Escándalo TV and Model Latina. The spot, which includes a strong value message, will focus on preparing for celebrations with family and feature both national and brands found exclusively at Kohl’s. Value focused print ads will run in popular Hispanic magazines like Cosmopolitan en Español, People en Español, Latina and Vanidades, and key Kohl’s sales events will be supported with national television and radio advertising. Kohl’s will also offer shoppers ‘Feliz Navidad’ gift cards to include with their purchases.

The In Store Experience

Kohl’s understands and respects that customer time is valuable, so shoppers can expect a convenient, efficient and fun to shop holiday experience. In fact, customers recently significantly boosted the retailer’s satisfaction ratings versus last year in areas that positively impact time compressed shoppers.

Kohl’s convenient and inspiring in store experience will begin at store entrances where shoppers will be invited in with above door signage that evokes the delight in affordable gift giving. Throughout the store, ‘It Gift’ and ‘Present Perfect’ graphics will guide shoppers to the best merchandise, making it easy for customers to navigate the store. Unique displays and impactful fixtures will highlight designated areas for brands exclusive to Kohl’s including FILA SPORT, launched this Fall.

Customers can also expect a speedy and efficient check out process. Recent technology enhancements will help quickly move long check out lines. Also, Kohl’s has made it easier than ever for customers to sign up, during the check out process, to receive e-mail notifications on events, special offers and more.

Gift Cards

Due to gift card popularity and customer convenience, Kohl’s recently implemented a Gift Card Center in all stores, with two separate kiosks located on the main aisle across from point-of-sale locations. New this year, customers will be able to redeem e-gift cards – gift cards that can be bought, given and printed online – in Kohl’s stores and online at Kohls.com Also, customers will be able to purchase gift cards from other retailers including, Best Buy, Apple iTunes, Applebee's and Barnes & Noble, solidifying Kohl’s as a gift card destination.

Kohl’s Return Policy – Returns Made Easy

Kohl’s industry-leading, flexible return policy, with no hassle and no need to explain, helps ensure shoppers have a ‘Present Perfect’ season.

• Purchases made with a Kohl’s charge card can be returned without a receipt for full refunds or even exchanges.
• Shoppers with an original receipt are eligible for full refunds or an even exchange.
• Customers without receipts and those with gift receipts will be granted an even exchange or Kohl’s merchandise credit for returned items.
• Kohls.com purchases can conveniently be returned or exchanged to either Kohls.com or a local Kohl’s store with a receipt.

Enhancements to Kohls.com

This season, Kohl’s has enhanced its online retail environment making it faster and easier for customers to see the best sales offers and find the most relevant merchandise. Kohls.com will also periodically feature special buys that will be available only online, in some cases offering customers 50 percent savings or more off of great gifts.

Online Holiday Gift Shop

On Oct. 15, Kohl’s online Holiday Gift Shop went live and will evolve throughout the season, from a focus on entertaining to gifting, to reflect the most seasonally relevant items. As of Nov. 1, the site will incorporate artists from La Nouba™by Cirque du Soleil® from the company's television brand spot and a Gift Finder tool will go live. The Gift Finder will enable customers to conveniently sort through sharp deals on gifts based on expanded search criteria like most wished for, price, new arrivals, and personality types. Throughout the season, Kohls.com will spotlight special shipping offers as they become available.

Today’s Extra Value Offer

Throughout November, shoppers will be able to take advantage of special savings offers, exclusive to Kohls.com. Each day will feature, for that day only, one to two items offered at a price lower than in store. In some cases, the day’s featured items may be found exclusively online. Kohl’s will unveil the offers daily at Kohls.com.

Online Consumer Engagement Contest

From Nov. 1 to Dec. 28, Kohl’s online shoppers are encouraged to enter daily to win the ultimate holiday gift from the Kohls.com Present Perfect Sweepstakes. One grand prize winner will receive $10,000 cash. One first prize winner will receive a La Nouba experience including a family vacation for four to Orlando, Fla. to see Cirque du Soleil’s La Nouba, a $500 Kohl’s gift card, $1,000 in cash and more. Also, 10 $50 Kohl’s gift cards will be awarded daily throughout the contest, and each entrant will receive 10 percent off of their next Kohls.com purchase before Dec. 28.1

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. By the end of November, Kohl’s will operate 1,004 stores in 48 states. A company committed to the communities it serves, Kohl’s has raised more than $102 million for children’s initiatives nationwide through its Kohl’s Cares for Kids® philanthropic program. For a list of store locations and information, or for the added convenience of shopping online, visit www.kohls.com.

1 Complete sweepstakes rules available at Kohls.com