Parking Signage from Amazon.com Inc. is located outside a department store in Kohl’s Corp. in Huntington Beach, California, USA, on Saturday, May 11, 2019.
Kyle Grillot | Bloomberg | Getty Images
Kohl’s said it added at least 2 million new customers last year thanks to an unlikely friend it has found on Amazon.
“While the details of the partnership are confidential, we will continue to see this increase both sales and profits,” Michelle Gass, executive director, said during a conference call Tuesday morning.
Kohl’s began accepting Amazon returns to 10 of its stores in the spring of 2017. In the summer of 2019, Amazon kiosks were returning nationwide. The hope has been for the service to generate walking traffic and increase sales.
According to Kohl’s, a third of these new visitors were millennials. The company is likely to be able to get these new buyers to repeat visitors.
Conversion rates are on the rise for people visiting Kohl’s stores to return a package to Amazon, Gass said, meaning more and more visitors are ringing the record before they leave.
Gass has been looking for partnerships with other big brands to expand its customer base, including a close partnership with the Sephora beauty business.
Earlier Tuesday, Kohl’s reported fourth-quarter earnings and sales that exceeded analysts ’estimates. The company expects stronger growth ahead. He also restored his dividend and said he plans to recoup shares.
Meanwhile, Kohl’s is also facing pressure from a group of activist investors who have tried to take control of Kohl’s board of directors. Among other things, the group has said it is skeptical that Kohl’s link to Amazon will be added to sales. In a letter released in late February, activists denounced Kohl’s “reluctance to share detailed information about the program with investors.”
Kohl’s shares have recently risen around 1%. Its shares have risen 45% over the past twelve months, on Monday’s market closing date, bringing their market value to $ 8,999 million. He is bigger than Nordstrom and Macy’s rival.