Kohl's adds 2 million new customers thanks to Amazon's returns program

“We’re especially seeing this with the increase in post-holiday traffic in January,” said Kohl ’s executive. “In 2020, we can attribute at least 2 million new unique customers to Kohl’s shopping due to the Amazon Returns program, a third of which were millennials. While the details of the partnership are confidential, we continue to see a boost to both sales and profits.”

The National Retail Federation predicts retail sales will grow 6.5% to 8.2% in 2021 as COVID-19 vaccines continue to be rolled out

Kohl's earlier reported fourth-quarter earnings and sales that beat expectations.

The department store retailer focused on lining racks and shelves with eye-catching labels, naming the multiple brands currently in stock and set to launch in the near future.

Calvin Klein underwear and loungewear will be available in 600 stores and on its e-commerce site in the fall , while Eddie Bauer outdoor gear will be available in 500 stores and online.

Meanwhile, Kohl ’s own athleisure brand, FLX, will launch this month for men and women.

Kohl's has been focusing on its merchandise lineup as part of the company's transformation. Last May, the company announced it would discontinue eight brands and has since shifted its attention to areas such as growing its women's apparel and sportswear businesses.

A partnership with beauty retailer Sephora is also coming this year, a move Gass called a "game changer."

"Not only will it drive significant beauty sales growth at a healthy margin, it will also have a halo effect across the store and drive sales in our other categories, including a positive impact on our women's business , " said Jennifer Aniston, chief executive officer of the company .

The analyst is increasingly optimistic about Kohl's prospects : "We like Kohl's continued focus on active beauty, stores as hubs and soft home merchandise, combined with the company's compelling loyalty program and more agile inventory management,"

Even with all the good news, Kohl's still faces challenges from a group of activist investors who say "poor retail execution" is hurting the company.

Neil Saunders, managing director of GlobalData, said it "completely rejects the suggestion that Kohl's is poorly run." However, GlobalData does raise the question of whether what Kohl's is doing is enough to grow.

He wrote: “Growth forecasts and deteriorating sales raise questions about whether Kohl’s plans are ambitious or transformative. The company has been proactive, diligent, and pursuing logical avenues for growth, such as developing a larger activewear business, investing in systems to support omnichannel, and partnering with Amazon and, most recently, Sephora… That said, we think Kohl’s needs to move faster, especially in terms of increasing store relevance.”

Amazon

Cole

North America