Parking signs from Amazon.com Inc. stands on Saturday, May 11, 2019 outside a Kohl’s Corp. Mall 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 he found on Amazon.
“While the details of the partnership are confidential, we will continue to see that it’s attracting sales and profits,” CEO Michelle Gass said during a conference on Tuesday morning.
Kohl’s began accepting Amazon returns at ten of its stores in the spring of 2017. By the summer of 2019, the Amazon kiosks nationwide were rolled out. The hope was that the service would increase foot traffic and increase sales.
According to Kohl’s, a third of these new visitors were millennials. The company probably hopes these new buyers can get repeat visitors.
The conversion rate is trending upward for the people who visit Kohl’s stores to return a package to Amazon, Gass said, meaning visitors are increasingly picking up something at the registry before they go.
Gass has been looking at collaborating with other major brands to broaden its customer base, including an upcoming partnership with beauty company Sephora.
Kohl’s reported earnings and sales for the fourth quarter earlier Tuesday, exceeding analysts’ estimates. The company predicts stronger growth ahead. It also reinstated its dividend, saying it plans to buy back shares.
Meanwhile, Kohl’s is also being put under pressure by a group of activist investors who have tried to take control of Kohl’s board. The group said, among other things, that it was skeptical that Kohl’s connection with Amazon would contribute to the sales. In a letter published in late February, activists called for Kohl’s “unwillingness to share detailed information about the program with investors.”
Kohl’s shares recently rose about 1%. Its share has risen 45% over the past twelve months since the market closed, bringing its market value to $ 8.99 billion. It’s bigger than Nordstrom and Macy’s.