Here's a number worth paying attention to - Kohl's says that it acquired two million new customers during 2020 because of its Amazon relationship that allows people to return online Amazon purchases to a Kohl's store.
“It continues to be a key contributor to driving traffic and introducing new customers to Kohl’s,” said Kohl's CEO Michelle Gass.
"We especially saw this with the acceleration of post-holiday traffic in January. In 2020, we can attribute at least two million new, unique customers shopping at Kohl’s as a result of the Amazon Returns program, a third of which are millennials. And while the details of the partnership are confidential, we continue to see that this is accretive to both sales and profit,” she said.
- KC's View:
I think I was skeptical about the relationship when it was first announced, but these numbers seem to speak for themselves.
One caveat, though. I remember taking some Amazon returns to Kohl's in the early days of the partnership, but lately I've been dropping them off to Whole Foods, which also takes them and is closer.
It is just important to know that Amazon is competing with Kohl's for the returns traffic. It also suggests the degree to which Amazon returns could bring new folks into Whole Foods stores.