Kohl’s stopping Amazon returns at some stores as a test: reports

Kohl’s stopping Amazon returns at some stores as a test: reports

  • 19.03.2025 17:53
  • msn.com
  • Keywords: Kohl's, Amazon

Kohl’s is testing discontinuing Amazon returns at some stores to focus on improving customer experience and store efficiency. Employees support the move, citing reduced administrative work and potential financial benefits for the retailer, which has faced declining sales.

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Estimated market influence

Kohl's

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Analyst rating: N/A

Kohl's is discontinuing Amazon returns at some stores as part of a test to improve their store experience and reduce operational headaches. This move could be financially beneficial for Kohl's, which has seen declining sales.

Amazon

Amazon

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Analyst rating: Strong buy

Amazon may face challenges with customers who rely on Kohl's for returns, potentially impacting Amazon's return process efficiency and customer satisfaction.

Context

Analysis of Kohl’s Amazon Returns Test: Business Insights and Market Implications

Key Facts and Data Points:

  • Amazon Returns Service Started: Kohl's began accepting Amazon returns in October 2017.
  • Current Test: Kohl's is discontinuing the third-party Amazon returns service at some stores as part of a test to improve store experience.
  • Stores Impacted: Stores in Wisconsin, Missouri, and Massachusetts are part of the test. Specific locations remain undisclosed as of Tuesday.
  • Employee Feedback: Kohl’s employees on Reddit expressed support for the move, citing reduced administrative burden and preferring to allocate time to other tasks.

Market Trends:

  • Shift in Retail Strategy: Kohl's is focusing on optimizing store operations and reducing reliance on third-party services like Amazon returns.
  • Broader Industry Trend: Other retailers (e.g., Macy’s, Dollar General) are also closing underperforming locations or reformatting stores to adapt to changing consumer preferences.

Competitive Dynamics:

  • Operational Efficiency: By discontinuing Amazon returns, Kohl's aims to streamline operations and reduce costs associated with handling third-party logistics.
  • Customer Experience: The test may help Kohl’s better understand customer expectations and preferences, potentially leading to a more tailored in-store experience.

Financial Implications:

  • Cost Savings: Reducing the administrative and operational burden of handling Amazon returns could lead to cost savings for Kohl's.
  • Sales Performance: Kohl's has faced declining sales in recent years, prompting strategic changes like store closures and service optimizations.

Strategic Considerations:

  • Long-Term Growth Strategy: Kohl’s CEO emphasized the importance of taking difficult actions to support business health and future growth.
  • Focus on Core Competencies: The move aligns with a broader retail industry trend of focusing on core competencies and reducing reliance on external partnerships that may dilute operational focus.

Regulatory and Industry Impact:

  • Potential Expansion: If successful, the test could lead to broader implementation across Kohl’s stores, setting a precedent for other retailers.
  • Consumer Behavior: The move reflects an evolving retail landscape where consumers expect seamless but not necessarily omnichannel experiences.

This analysis highlights Kohl's strategic pivot to optimize operations and align with market trends, potentially influencing competitive dynamics and long-term business outcomes in the retail industry.