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The agreement, announced Tuesday, means Amazon customers will have a vast network of stores to make returns. In recent years, Kohl's has improved its private label business and added active wear. Market data powered by FactSet and Web Financial Group. Amazon would be able to purchase the shares, (at the rate of 350,000 per year) beginning January 15, 2020. Analysts still believe there are too many department stores, so I would expect Kohl’s to shed some more real estate, but that is hardly the long-term solution to their woe’s. In my current state of indefinite semi-retirement, I’m managing my LinkedIn group, RETAIL SPEAK as well as cultivating my lifelong passion for all things vehicular. The announcement of the agreement, combined with the April 23, 2019 Milwaukee Journal Sentinel report of Amazon negotiating the rights to buy 1.7 million shares of Kohl’s stock (about 1% of shares outstanding) drove the stock price to a year high of $75.48, by the day’s closing. The first such store opened in Waukesha, Wis., in February. Kohl’s shares opened yesterday (Thursday, January 9, 2020) around $45.00, just above Kohl’s 52-week low of $43.33. Kohl’s needed more footfall, and Amazon needed to improve the ease of ever-increasing customer returns. Eleven hundred Kohl’s locations would be ideal; but a couple hundred would be a good start. Items are returned free of charge regardless of reason. Kohl's has one more shot at proving this program can work. I wonder how many Amazon executives actually thought they were going to exercise the $69 stock purchase when the deal was struck in April 2019? If the retailer can't generate more sales this month when there should be a large influx of people returning packages, there seems to be little hope it will ever amount to anything, and Kohl's is facing a much more difficult future. We will have to wait until the March 03, 2020 earnings report to see how bad the bleed was, however given the costs incurred by Kohl’s servicing all those Amazon returns, on top of excess holiday discounting and coupon incentives, I’m guessing it won’t be pretty. The deal also has some stickiness. They just bring the item in, and the retailer processes the return free of charge. Ironically, Amazon purchased Whole Foods at $42.00 per share at about twice the valuation that Kohl’s currently has; perhaps the price is right! It's a good bet a large number of those items will be returned. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, The retailer's quarterly comparable stores sales. Meanwhile, competitors Target and TJX are celebrating big wins in the same categories. While there is some evidence customers are using the department store chain as a drop-off point to return their Amazon packages, Kohl's really just has one more chance to show the partnership can generate sales before investors conclude the program is a failure. We are taking precautions in our shipping facility to ensure we have a safe packing center, but returns is a whole different story. "Better to be swimming alongside than in front of the shark," wrote Lejuez in a research note obtained by the Associated Press. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. The retail apocalypse is having a devastating impact on mall-based retailers -- J.C. Penney (OTC:JCPN.Q) and Macy's (NYSE:M) also reported falling comps, though the former's were much worse than the latter's, and analysts see Macy's as having a chance to make a U-turn. Although CEO Michele Gass assured investors the department store's vaunted partnership with Amazon.com (NASDAQ:AMZN) would drive sales higher as it was rolled out nationally last year, a disastrous third-quarter earnings report and now a disappointing Christmas update makes it clear the program is not working. We have returns being sent to another location to avoid possible cross contamination. Score one for humans: Walmart fires its shelf-scanning robot, Cowboys are on the verge of becoming first team in NFL history to start 0-9 vs. the spread. "Amazon and Kohl's have a shared passion in providing outstanding customer service, and this unique partnership combines Kohl's strong nationwide store footprint and omnichannel capabilities with Amazon's reach and customer loyalty," said Michelle Gass, Kohl's chief executive. The return service will be free to customers who bring Amazon-bought products to Kohl's stores, instead of mailing products back to Amazon. I witnessed my dad and uncle go from accidental retailers to brand builders, which became the genesis for my four-decade career as a retail planner, trend forecaster, speaker and author. All customers have to do is bring their eligible Amazon returns to their local Kohl’s, no box or label needed. Amazon and Kohl's are expanding their return partnership to all Kohl's stores starting in July. While geolocation surveys suggest more customers have come to Kohl's stores following the program's rollout, the sales results make it obvious they've purchased very little if anything. His coverage reflects his passion for motorcycles, booze, and guns (though typically not all exercised at the same time), but his writing also covers the broader sectors of consumer goods, technology, and industrials. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Lessons learned from the ‘early days’ as well as from clients, retail legends, and change agents are chronicled in my 2015 IBPA award winning publication RETAIL SCHMETAIL, One Hundred Years, Two Immigrants, Three Generations, Four Hundred Projects. Get the latest on openings, closings and trends of the D-FW retail scene. Does CBRE’s headquarters relocation to Dallas signal there are more coming? I am the product of an ‘immersive’ retail upbringing as the son of a midcentury American merchant. Kohl’s customer demographic hovers between 35 and 44 years old according to CivicScience, which is higher than Target’s, though lower than Walmart’s. Management blamed the shortfall on weakness in its women's apparel department, even though it had a "solid performance" in footwear and men's, but with women's accounting for nearly 30% of total annual sales, any lapse will be magnified. At the same time, Amazon said this was its most successful Christmas ever, with tens of billions of products sold worldwide and the number of items shipped via Prime one-day or same-day delivery quadrupling over last year. It's not the first collaboration between the online giant and the brick-and-mortar retailer. Select either UPS or Kohl's as the drop-off location and Amazon will email a QR code you can show to the employee who takes care of your return. Citi Research analyst Paul Lejuez said the partnership is positive for Kohl's. Maria Halkias, Staff writer. Stock Advisor launched in February of 2002. Could Amazon return to Kohl's in more ways than one? It'll pay $69.68 for those shares. Maria Halkias has covered the retail scene for The Dallas Morning News since 1993. Kohl’s aspires appeal to Target’s younger, female Millennial customers, that are swooning over Target’s hot private label fashions, not to mention the $2 billion Cat & Jack kids “brandapalooza.”. Amazon will be able to buy up to 1.7 million shares of Kohl's stock, starting in January, according to a regulatory filing detailing the agreement. Last month, Kohl's said it will add Amazon Echo, Fire and Kindle electronics products to about 200 of its stores, including a few in Texas. The retailer's quarterly comparable stores sales have only surpassed 1% just three times in the past 15 quarters, going back to Q-1 2016. Here’s how to return your Amazon-bought items to Kohl’s stores in a couple easy steps. Items are accepted with or without return packaging. Yet it was this sort of deficiency that Amazon was supposed to help alleviate. Kohl's operates 1,150 stores, including 84 in Texas. Kohl’s COVID-19 return policy. If Kohl's has any chance of showing the partnership can work, it needs consumers to make many of those returns through its stores and then buy something while they're there. Gass was amped about the partnership's potential, telling investors last quarter that with the returns program operating in all stores for the holidays, Kohl's was setting up special merchandising areas around the returns counter to capture new customers. The thesis that led to the much-celebrated Kohl’s/Amazon arrangement wasn’t bad when it was first announced to the public last April. Usually, Kohl’s has a 180-day return window. I’ve had the great pleasure to share my insights on the ever-changing world of retail with audiences on three continents. For Amazon to truly build the kind of traction they want and need in fashion, they need to get those products into stores. Rich has been a Fool since 1998 and writing for the site since 2004. The main caveat of the service is … It's also begun to downsize stores by adding grocer Aldi to its locations. The Addison location of Whole Foods in March was the first local store to get the service. While there is some evidence customers are using the department store chain as a drop-off point to return their Amazon packages, Kohl's really … The former with their killer private labels and the latter with better discounting, variety and shoppability. By signing up you agree to our privacy policy, Stand with us in our mission to discover and uncover the story of North Texas. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. Partnerships with grocers could make Kohl's stores, located mostly in neighborhoods on busy suburban streets instead of malls, more like stopping at a Target or Walmart Supercenter. It'll pay $69.68 for those shares. Macy’s Yes, accepting returns. They then take the merchandise back to the regular customer service desk in any Kohl's store. Amazon also has started rolling out return desks in Whole Foods Market stores. I witnessed my dad and uncle go from accidental retailers to brand. A similar arrangement also has been announced with Planet Fitness. Reach Rich here. Kohl’s decision to accept Amazon returns chain-wide was a bold and strategic move. Another handful of locations are in the works. On Tuesday, J.C. Penney's stock closed flat, Macy's was up slightly and Nordstrom shares fell slightly. Contact Rich here. Unfortunately, the lack of sales during the holidays suggests those fears were well founded.

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