Kohl's testing the end of Amazon returns at a few stores. One is in Wisconsin.

Kohl's testing the end of Amazon returns at a few stores. One is in Wisconsin.

  • 17.03.2025 18:43
  • eu.jsonline.com
  • Keywords: Kohl's, Amazon

Kohl's is testing the end of Amazon returns at several stores, including Eau Claire, to gather customer feedback. The move follows years of offering the service to boost store traffic but has not achieved expected results, as part of broader changes under new CEO Ashley Buchanan.

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Estimated market influence

Kohl's

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Analyst rating: N/A

Kohl's is testing the end of Amazon returns, which could impact customer traffic and their partnership with Amazon.

Amazon

Amazon

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Analyst rating: Strong buy

Amazon's return service at Kohl's stores is being suspended, potentially affecting customer convenience.

Context

Kohl's Testing End of Amazon Returns at a Few Stores, Including Eau Claire

Overview

  • Kohl's is testing the suspension of its Amazon returns service at a "handful" of stores, including one in Eau Claire, as part of efforts to gather customer feedback.
  • The retailer began accepting Amazon returns several years ago to increase store traffic, offering discount coupons to customers who returned items.

Business Strategy

  • Test scope: Kohl's is testing the service suspension at specific locations: Eau Claire, Leominster, Mass., and Washington, Mo.
  • Customer feedback focus: The test aims to understand customer expectations and preferences regarding returns.
  • Amazon partnership status: Amazon confirmed that returns via Kohl's stores will no longer be available but emphasized that Kohl's remains a return partner.

Customer Impact

  • Potential foot traffic decline: Kohl's has not seen the anticipated increase in store traffic despite offering Amazon returns since 2019, which was expanded to nearly all stores by then.
  • Customer sentiment: The move could lead to dissatisfaction among customers who relied on Kohl's for convenient returns.

Competitive Landscape

  • Amazon's alternative strategy: Amazon is committed to maintaining a network of drop-off locations, including other retail partners.
  • Kohl's differentiation challenge: The retailer faces pressure to differentiate itself in a competitive market, particularly under new CEO Ashley Buchanan, who is implementing unspecified initiatives.

Financial Performance

  • Declining performance: Kohl's has experienced a 12-quarter decline in performance as of March 11, signaling ongoing challenges in attracting and retaining customers.

Future Outlook

  • Long-term implications: The test could lead to broader changes in Kohl's return policies, impacting customer loyalty and store traffic.
  • Regulatory considerations: While no immediate regulatory impact was mentioned, future changes may require compliance with retail and e-commerce regulations.

This analysis highlights the strategic shift at Kohl's, its competitive dynamics, and potential long-term effects on customer behavior and financial performance.