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 18:33
  • msn.com
  • Keywords: KOHLS, AMAZON

Kohl's is testing a temporary halt on accepting Amazon returns at several stores in Massachusetts, Missouri, Washington, and Wisconsin, with no immediate changes in Ohio. The retailer aims to assess customer feedback as part of its ongoing efforts to improve store experience and efficiency amid declining sales and recent store closures.

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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 in several stores, which may impact customer foot traffic and sales.

Amazon

Amazon

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Analyst rating: Strong buy

Amazon's partnership with Kohl's is being tested, potentially affecting their mutual benefits.

Context

Analysis and Summary: Kohl's Amazon Return Policy Test

Kohl's Amazon Partnership Details

  • Initiative: Kohl's partnered with Amazon starting in 2017, expanding nationwide by 2019.
  • Objective: Boost sales and drive foot traffic for both companies.
  • Customer Impact: Gained 2 million customers post-launch.

Current Test on Amazon Returns

  • Scope: Temporarily discontinued at stores in Massachusetts, Missouri, Washington, and Wisconsin.
  • Duration: Ongoing test; duration and number of affected stores not disclosed.
  • Reasoning: Kohl's aims to assess customer behavior and operational efficiency.

Financial Performance and Store Closures

  • Sales Decline: 7.2% YoY decrease in net sales for 2024.
  • Store Closures: Announced closure of 27 underperforming stores, including two in Ohio (Blue Ash and Forest Mills).
  • Workforce Reduction: Cut 10% of corporate workforce, with about 200 layoffs.

Kohl's Presence in Ohio

  • Total Stores: Over 60 locations across Ohio.
  • Major Cities: Cincinnati (5 stores), Columbus, Akron, North Canton.

Competitive Landscape

  • Retail Trends: Part of a broader retail trend, including store closures by Joann Fabrics, Macy's, Big Lots, and JCPenney.

Strategic Considerations

  • Customer Behavior: Concerns about Amazon returns not driving new Kohl's customers.
  • Operational Efficiency: Focus on improving profitability through real estate and workforce adjustments.

Long-Term Implications

  • Potential Shift: May signal a broader shift in Kohl's strategy towards more direct customer engagement.
  • Market Impact: Could influence other retailers to reevaluate partnerships and operational models.

Regulatory Considerations

  • Policy Changes: Potential long-term regulatory impacts if return policies are altered, though currently a test phase.

This analysis highlights Kohl's strategic adjustments in response to declining sales and competitive pressures, with implications for both customer relations and industry practices.