Kohl's begins removing Amazon returns from some locations, Pittsburgh not among them yet

Kohl's begins removing Amazon returns from some locations, Pittsburgh not among them yet

  • 21.03.2025 18:52
  • cbsnews.com
  • Keywords: Kohls, Amazon

Kohl's is testing ending Amazon returns at some locations, excluding Pittsburgh for now. The move follows a successful pilot program but comes amid declining sales. Customers rely on convenience, with alternatives like UPS Store and Staples still available.

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Estimated market influence

Kohl's Department Store

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Analyst rating: N/A

Kohl's is discontinuing Amazon returns in some locations, which may reduce foot traffic and sales.

Amazon

Amazon

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Analyst rating: Strong buy

Loss of Kohl's as a return location could affect customer convenience and Amazon's logistics.

Context

Business Insights and Market Implications

Key Facts and Data Points

  • Pilot Program: Kohl's began accepting Amazon returns in 2017 as a pilot program, expanding it to all locations by 2019.
  • Foot Traffic Increase: The initiative boosted foot traffic by tens of millions across stores.
  • Target Demographic: Focused on younger shoppers.
  • Sales Decline: Kohl's sales have decreased for the past 12 quarters.
  • Current Test Locations: Amazon return removal is being tested in three towns in Massachusetts, Wisconsin, and Missouri.
  • Alternative Return Centers: UPS Store and Staples Office Supply stores continue to accept Amazon returns.

Business Impact

  • Strategic Testing: Kohl's appears to be evaluating the financial and customer experience implications of removing Amazon returns, potentially driven by declining sales.
  • Customer Convenience: Removal of Amazon returns may reduce convenience for some customers, particularly those who rely on Kohl's as a drop-off point.

Market Implications

  • Competitive Dynamics: Other retailers like UPS and Staples are positioned to benefit from Kohl's test, as they remain primary options for Amazon returns.
  • Consumer Behavior: The move could shift consumer behavior, forcing Amazon customers to explore alternative return locations or shop elsewhere for convenience.

Strategic Considerations

  • Focus on Core Customers: Kohl's may be prioritizing in-store experiences over the convenience of Amazon returns, potentially aligning with efforts to attract core customers rather than relying on foot traffic from external partnerships.
  • Long-Term Effects: The success of this test could influence broader retail strategies, including partnerships and customer retention tactics.

Competitive Landscape

  • Retailer Adaptation: Retailers may increasingly focus on optimizing in-store experiences and strategic partnerships to differentiate themselves in a competitive market.
  • Customer Loyalty: The decision underscores the importance of balancing customer convenience with financial performance, a critical consideration for retailers navigating evolving consumer preferences.