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Kohl's not accepting Amazon returns at 'test' stores as sales slide

Kohl's not accepting Amazon returns at 'test' stores as sales slide

  • 19.03.2025 23:51
  • eu.dispatch.com
  • Keywords: Kohl's, Amazon

Kohl's is testing a halt to Amazon returns at some stores amid declining sales and plans to close locations and lay off workers. The move follows reports that the return program slowed operations without boosting sales.

Amazon NewsAMZNsentiment_satisfied

Estimated market influence

Kohl's

Negativesentiment_dissatisfied
Analyst rating: N/A

Kohl's is facing a decline in sales and has announced store closures, impacting their financial performance.

Amazon

Amazon

Positivesentiment_satisfied
Analyst rating: Strong buy

Amazon benefits from Kohl's decision to stop accepting returns, potentially increasing Amazon's competitive edge in online retail.

Context

Business Insights and Market Implications Analysis

  • Kohl's Test Program: Kohl's has temporarily stopped accepting Amazon returns at certain stores (Leominster, MA; Eau Claire, WI; Washington, MO) as part of a "test and learn" initiative to improve the in-store experience.
  • Store Closures: The company plans to close stores by April and cut jobs, reflecting broader retail industry challenges.
  • Financial Performance: Kohl's reported a 7% decrease in same-store sales in Q4 2024 and expects a 2% net sales decline for 2025.
  • Market Trends: Online shopping and the COVID-19 pandemic have accelerated store closures across retail, with JCPenney, Joann, Macy’s, and Kohl's among those impacted.
  • Competitive Dynamics: The decision to halt Amazon returns aligns with a broader shift in retail strategies, focusing on operational efficiency over convenience.
  • Strategic Implications: The test program aims to streamline operations but risks alienating customers who rely on return flexibility.
  • Long-Term Effects: Retailers like Kohl's face pressure to adapt to changing consumer behaviors and digital competition, with potential regulatory impacts on e-commerce policies.