Kohl’s Says It Added 2 Million New Customers In 2020, Thanks To Amazon

Amazon.com Inc. parking signage stands outside a Kohl’s Corp. department store in Huntington Beach, California, U.S., on Saturday, May 11, 2019.

Kyle Grillot | Bloomberg | fake images

Kohl’s said it added at least 2 million new customers last year thanks to an unlikely friend it found on Amazon.

“While the details of the partnership are confidential, we will continue to see this increase both sales and profits,” CEO Michelle Gass said during a conference call Tuesday morning.

Kohl’s began accepting Amazon returns at 10 of its stores in the spring of 2017. By the summer of 2019, Amazon’s return kiosks launched nationwide. The hope has been that the service will boost foot traffic and increase sales.

According to Kohl’s, a third of these new visitors were millennials. The company probably hopes to be able to make these new buyers repeat visitors.

Conversion rates are trending upward for people visiting Kohl’s stores to return a package to Amazon, Gass said, meaning more and more visitors are calling something at the register before leaving.

Gass has been seeking collaborations with other big-name brands to expand its customer base, including an upcoming partnership with the beauty company Sephora.

Earlier Tuesday, Kohl’s reported fourth-quarter earnings and sales that beat analyst estimates. The company predicts stronger growth in the future. He also reinstated his dividend and said he plans to buy back shares.

Meanwhile, Kohl’s is also facing pressure from a group of activist investors who have tried to seize control of the Kohl’s board. Among other things, the group has said it is skeptical that Kohl’s merger with Amazon is boosting sales. In a letter published in late February, activists denounced Kohl’s “reluctance to share detailed information about the program with investors.”

Kohl’s shares recently rose about 1%. Its shares have gained 45% in the last 12 months, at the close of the market on Monday, bringing its market value to $ 8.99 billion. That’s bigger than rivals Nordstrom’s and Macy’s.


Source link