Amazon.com Inc. Parking Signage is on Saturday, May 11, 2019, in front of a Kohl’s Corp. department store. from 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 on Amazon.
“While the details of the partnership are confidential, we will continue to see this increase both sales and profit,” 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 returns kiosks were running nationwide. The hope was that the service would drive traffic on foot and increase sales.
According to Kohl, 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 on the rise for people visiting Kohl’s stores to return a package to Amazon, Gass said, which means more and more visitors are calling the registry before leaving.
Gass has sought collaborations with other reputable brands to expand its customer base, including a future partnership with the Sephora beauty business.
Earlier on Tuesday, Kohl’s reported fourth-quarter earnings and sales that exceeded analysts’ estimates. The company predicts stronger growth in the future. He also reinstated his dividend and said he intends to buy back shares.
Meanwhile, Kohl’s is also facing pressure from a group of activist investors who have tried to take control of Kohl’s board. Among other things, the group said it was skeptical that Kohl’s connection with Amazon would add to sales. In a letter published in late February, activists said that “Kohl’s reluctance to share detailed information about the program with investors.”
Kohl’s shares have recently risen by about 1%. Its shares have gained 45% in the last 12 months since the market closed on Monday, bringing its market value to $ 8.99 billion. He’s bigger than his rival Nordstrom and Macy’s.