Business Insights and Market Implications

Kohl’s Amazon Returns Partnership

• Began as a pilot program in 2017, expanded to all locations by 2019.
• Increased foot traffic by tens of millions across stores, targeting younger shoppers.

Current Test Phase

• Removing Amazon returns from some locations starting in three towns: Massachusetts, Wisconsin, and Missouri.
• No impact on Pittsburgh area yet; potential future expansion could be a local issue.

Financial Performance

• Kohl’s sales have declined for 12 consecutive quarters despite increased foot traffic.
• Question arises whether the partnership with Amazon contributed to financial underperformance.

Competitive Dynamics

• Alternative options for Amazon returns: UPS Store and Staples Office Supply stores remain available.
• Kohl’s removal of Amazon returns may reduce its competitive edge in attracting younger, tech-savvy shoppers.

Strategic Considerations

• Test phase suggests a strategic shift toward focusing on core business and improving profitability.
• Potential long-term implications for retail partnerships and customer retention strategies.

Market Implications

• Could signal broader industry trends toward retailers re-evaluating non-core partnerships.
• Impact on foot traffic and sales performance will be key metrics to monitor in the test phase.