“Kohl’s stock explodes after announcing it will accept Amazon returns at all its locations.”
Yesterday, Kohl’s announced it will accept returns for items ordered on Amazon at all 1,150 of its US locations beginning in July. After the news, Kohl’s shares surged nearly 10%.
The move extends the partnership Kohl’s and Amazon have enjoyed since 2017, when Kohl’s first started selling the e-commerce giant’s smart-home products at select stores.
That’s just the tip of the iceberg my friend.
Beyond Amazon, Kohl’s has forged other partnerships to drive traffic to its brick n mortar retail stores. For example, they’re putting an Aldi grocery chain and a Planet Fitness in some of their locations.
Because they realize something most other retailers like JC Penny, Macy’s, Sears and the like don’t get…
Which is that in 2019 it’s not about competition, it’s all about collaboration. Especially with overall conventional big box retail sales on the decline nationwide.
Kohl’s is smart enough to see the value in leveraging competitive strengths with strategic partners. And they realize that proximity is power. People grocery shopping, returning Amazon purchases or working out will swing right into their store afterwards and buy Kohl’s merchandise instead of heading over to one of the aforementioned retailers. Plus Aldi, Amazon and PF customers are intensely loyal and Kohl’s can tap into that by association.
People don’t need more ways to buy from you, they need more reasons. Reasons that drive consumer decisions like proximity and convenience.
Crazy or Genius?
I’d say genius because this strategic collaboration is already paying dividends.
Earnest Research Inc. found that sales at Kohl’s stores in Chicago — the pilot market that helped kick off the Amazon partnership — outran sales nationwide last year.
They also found that the percentage of new Kohl’s customers at the Chicago location was up 9% in 2018, compared to just 1% growth in the rest of the country.
How are you collaborating instead of simply competing?
Are you giving customers more REASONS to buy from you?
Want some killer ideas on how to collaborate like a couple platinum musicians or a few craft brewers? Head over here and flip straight to Chapter 4.