The parking signs of Amazon.com Inc. stand outside a Kohl’s Corp. department store on Saturday, May 11, 2019. in Huntington Beach, California, USA
Kyle Grillot | Bloomberg | Getty Images
Kohl’s said it added at least 2 million new customers last year thanks to an unlikely friend it found in Amazon.
“While details of the partnership are confidential, we will continue to see it contribute to both sales and profits,” Chief Executive Officer Michelle Gass said in a conference call Tuesday morning.
Kohl’s began accepting Amazon returns in 10 of its stores in the spring of 2017. By the summer of 2019, the Amazon return kiosks were rolled out nationwide. The hope was that the service would attract more visitors and boost sales.
According to Kohl’s, a third of these new visitors were millennials. The company probably hopes it can ensure these new customers get repeat visitors.
Conversion rates are rising for the people who visit Kohl’s stores to return a package to Amazon, Gass said, meaning visitors are increasingly calling something at the checkout before going.
Gass has partnered with other major brands to broaden its customer base, including an upcoming partnership with beauty company Sephora.
Earlier Tuesday, Kohl’s reported fourth-quarter revenues and sales that were higher than analyst estimates. The company predicts stronger growth in the offing. It also recovered its dividend, saying it 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 Kohl’s administration. The group has said, among other things, that it is skeptical that Kohl’s partnership with Amazon will contribute to the sale. In a letter published in late February, activists called out Kohl’s “unwillingness to share detailed information about the program with investors.”
Kohl’s shares are up about 1% recently. The stock is up 45% over the past 12 months, from Monday’s market close, bringing its market value to $ 8.99 billion. That’s bigger than Nordstrom’s and Macy’s.