Kohls Pauses Amazon Returns at Select Locations Amid Restructuring
Kohls is currently evaluating its Amazon returns program, initiating a test phase at select store locations where the service has been temporarily suspended. This development, confirmed by the company to USA TODAY on Wednesday, signifies a potential shift in Kohls’ strategy as it navigates a challenging retail landscape. The decision to reassess the Amazon returns partnership comes amidst broader organizational changes, including store closures and workforce reductions, as the retailer seeks to optimize operations and revitalize its financial performance.
The test, as described by Kohls in a statement, aims to "evolve our store experience and stay informed about customers’ expectations and preferences." Specific stores participating in the test phase, where Amazon returns are no longer accepted, include locations in Leominster, Massachusetts; Eau Claire, Wisconsin; and Washington, Missouri, as reported by Modern Retail.
News of the temporary suspension has also surfaced on the Kohls employee subreddit, where one user indicated that the test was announced internally to at least one participating store approximately a month prior to its commencement on Monday. The employee post suggested a generally positive reaction among associates, hinting at potential operational benefits stemming from the program’s pause.
Despite the ongoing test, Kohls’ official website has yet to reflect the change as of Wednesday evening. This lag in communication may lead to some customer confusion, particularly for those accustomed to utilizing the Amazon returns service at their local Kohls store. Customers are advised to verify the availability of Amazon returns at their specific Kohls location before attempting to process a return.
The partnership between Kohls and Amazon, which began in 2019, allowed Amazon customers to return eligible items at Kohls stores, regardless of whether the item was purchased at Kohls. The initiative was initially lauded as a mutually beneficial arrangement. For Amazon, it provided customers with a convenient physical return option, expanding its reach beyond online channels. For Kohls, the program was intended to drive foot traffic into stores, potentially boosting sales of its own merchandise.
However, recent reports suggest that the returns program has not yielded the anticipated financial benefits for Kohls. The Washington Post reported last year that the high volume of returns slowed down store operations without a corresponding increase in sales. This operational strain, coupled with the program’s potential to deter customers from browsing or purchasing Kohls products, may have contributed to the decision to re-evaluate the partnership.
The decision to test the suspension of Amazon returns aligns with Kohls’ broader restructuring efforts. The company is planning to close 27 underperforming stores by April, a move aimed at streamlining its physical footprint and focusing resources on more profitable locations. In addition, Kohls is reducing its corporate workforce by 10%, a difficult but necessary step to control costs and improve operational efficiency.
The financial pressures facing Kohls are evident in its recent performance. The company reported a 9.4% decline in sales for the fourth quarter of 2024 and a 7.2% decrease for the entire year. Furthermore, Kohls anticipates a 2% net decrease in sales for 2025, according to the Milwaukee Journal Sentinel, part of the USA TODAY Network. These figures underscore the need for Kohls to adapt its business model and implement strategies to revitalize its sales and profitability.
The temporary suspension of Amazon returns at select locations represents a strategic pivot for Kohls. While the initial partnership was intended to enhance customer convenience and drive store traffic, the company is now assessing whether the program aligns with its long-term financial goals. The test will likely involve careful monitoring of store traffic, sales data, and customer feedback to determine the impact of the Amazon returns suspension on overall performance.
The results of the test will inform Kohls’ future decisions regarding the Amazon returns program. The company may choose to permanently discontinue the service at all locations, modify the program to address operational inefficiencies, or reinstate the original arrangement if the test demonstrates its continued value.
The outcome of this test will be closely watched by other retailers who have partnered with Amazon to facilitate returns. The success or failure of Kohls’ revised strategy could have broader implications for the retail industry, potentially influencing how other companies approach similar partnerships.
In the meantime, customers who have traditionally utilized Kohls for Amazon returns should check the availability of the service at their local store before initiating a return. The best way to confirm whether a particular Kohls location is participating in the test and no longer accepting Amazon returns is to contact the store directly or consult Amazon’s return options online. While the Kohls website may not yet reflect the changes, Amazon’s return portal should provide accurate information regarding eligible return locations.
The decision to reassess the Amazon returns program is a significant step for Kohls, highlighting the challenges and complexities of navigating the evolving retail landscape. By experimenting with new approaches and carefully analyzing the results, Kohls aims to optimize its operations, enhance its customer experience, and ultimately improve its financial performance. The temporary suspension of Amazon returns represents a willingness to adapt and innovate, reflecting the company’s commitment to long-term success.
