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Kohl's stops accepting Amazon returns at some stores in test. Here's why. Are any in Ohio?

Kohl's stops accepting Amazon returns at some stores in test. Here's why. Are any in Ohio?

  • 17.03.2025 18:18
  • eu.dispatch.com
  • Keywords: Kohl's, Amazon

Kohl's is testing a temporary halt to Amazon returns at some stores in Massachusetts, Missouri, Washington, and Wisconsin. The company says this is part of its "test and learn" approach to understand customer preferences better. It remains unclear if any Ohio locations are included in the test.

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Estimated market influence

Kohl's

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Analyst rating: N/A

Kohl's is testing the discontinuation of Amazon returns at some stores, which may affect customer foot traffic and sales.

Amazon

Amazon

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Analyst rating: Strong buy

Amazon's partnership with Kohl's to accept returns is being tested by Kohl's, potentially impacting their relationship and convenience for Amazon customers.

Context

Kohl's Testing Amazon Returns Discontinuation: Business Insights and Market Implications

Key Facts and Data Points

  • Amazon Return Partnership History:

    • Kohl's partnered with Amazon in 2017, testing returns at stores in California and Wisconsin.
    • The program was rolled out nationwide by 2019.
    • Purpose: Boost Kohl's sales and drive foot traffic while offering Amazon customers a convenient return option.

  • Customer Impact:

    • Kohl's gained 2 million new customers through the partnership (reported in 2021).

  • Current Test:

    • Kohl's is temporarily discontinuing Amazon returns at several stores in Massachusetts, Missouri, Washington, and Wisconsin.
    • The test began last week; exact number of affected stores and duration are undisclosed.

  • Sales Decline:

    • Kohl's reported a 7.2% year-over-year decrease in net sales for 2024.

  • Store Closings:

    • Announced closure of 27 underperforming stores across 15 states by April 2024, including:
      • Two locations in Cincinnati: Blue Ash (4150 Hunt Road) and Forest Mills (100 Cincinnati Mills Drive).
    • Kohl's operates over 1,150 stores nationwide, with 60+ stores in Ohio.

  • Workforce Reduction:

    • Cut approximately 10% of corporate workforce, including layoffs affecting fewer than 200 employees.
    • Half the reductions were due to eliminating open positions.

Market Trends and Business Impact

  • Shift in Retail Strategy:

    • Kohl's is focusing on cost efficiency and profitability through store closures and workforce reduction.
    • The test of Amazon returns discontinuation aims to streamline operations and potentially improve margins.

  • Competitive Dynamics:

    • Kohl's joins other retailers like Macy's, JCPenney, and Big Lots in closing underperforming stores, reflecting broader industry trends toward consolidation and efficiency.

Long-Term Effects and Strategic Considerations

  • Customer Behavior:

    • The test may influence customer loyalty and foot traffic if Amazon returns remain inconvenient.
    • Kohl's risks alienating Amazon Prime members who rely on easy return options.

  • Regulatory Implications:

    • Potential scrutiny over retail closures' impact on local economies and labor markets.
    • Shifts in return policies could affect consumer trust and regulatory frameworks for e-commerce partnerships.

Ohio Market Presence

  • Kohl's has a significant presence in Ohio with over 60 stores, including locations in Akron, North Canton, Cincinnati (five stores), and Columbus.

This analysis highlights Kohl's strategic pivot toward efficiency and profitability, with potential long-term effects on its customer base, competitive landscape, and regulatory environment.