Kohls is now the third largest department store chain in the United States, according to a new ranking from the National Retail Federation reports Milwaukee Journal Sentinel. The trade group lists Kohls Corporation, based in Menomonee Falls, Wisconsin, behind Federated Department Stores Inc., and JC Penney Co. The giant Sears Holdings Corporation is no longer considered a department store chain by the trade group because it owns both Sears and Kmart stores.

Federated became the largest department store chain by buying St. Louis-based May Department Stores in 2005. The transaction pushed Federateds annual revenue to $22.4 billion for 2005. The Marshall Fields chain was part of May and will be re-named as Macys later in 2006 as Federated consolidates all its department store groups under the Macys name. JC Penney, based in Dallas, ranks second in the department store category with sales of $18.8 billion. Kohls is next with $13.4 billion in annual sales.

But Kohls is nipping at JC Penneys heels with a fast growth plan that calls for 500 new stores during the next five years. JC Penneys growth plan calls for 175 new stores during the next four years. This year, Kohls will open 85 stores. Most of the openings are scheduled for fall, when the company will enter Seattle for the first time.