The Wisconsin-based company said it plans to move west in 2003, first moving into Southern California and later into Arizona and Nevada, according the company's fourth-quarter earnings statement. The company is also looking for a site for a sizeable warehouse that will be used to supply its western operations.

Phoenix-based retail developer Westcor Partners said it has had discussions with Kohl's about two possible spots in power centers, but no leases have been signed.

Kohl's has become one of retail's hottest properties by drawing customers with its moderately priced apparel pitch. While other chains have been cutting back, closing or slowing expansion plans, Kohl's is opening stores at a fever pitch. The expansion is likely to transform the retailer from a regional powerhouse to national player.

Analyst say that Kohl's sharp merchandising is taking market share from such competitors as Mervyn's and J.C. Penney. Kohl's strengths are its shopper-friendly layout, convenient locations and plethora of national brands.

Kohl's has 320 stores, but plans to add another 130 in the next two years. Last year at this time the company had just 259 stores.

The publicly traded company earned $372.2 million year last year, compared to $258.1 in 1999. Comparable-store sales, a key measure in the retail market, rose 9% last year. The company's stock rose 45% in the past year.

Instant Insights /

Kohl's Heads West for Next Round of Expansion

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