The thesis that led to the very famous Kohl`s/Amazon arrangement was not bad when it was first announced to the public last April. Kohl`s needed more footfall and Amazon had to improve the ease of ever-increasing customer returns. Kohl`s decision to accept Amazon`s returns across the chain was a courageous and strategic step. The announcement of the deal, combined with the Milwaukee Journal`s Sentinel report of April 23, 2019, in which Amazon is trading the purchase rights to 1.7 million Kohl shares (about 1% of the outstanding shares), pushed stock prices to an annual level of $75.48 at the end of the day. Amazon could acquire the shares from January 15, 2020 (at a price of 350,000 per year). Kohl`s department stores, which have struck a deal with the Online Amazon Moloch since 2017, announced Tuesday that they will accept returns purchased by Amazon in all stores starting in July across the country. The stock purchase agreement gives Amazon a legitimate interest in the success of its partnership with Kohl`s, said Mark Altschwager, an analyst at Robert W. Baird & Co. As part of the stock deal, Amazon could buy about 350,000 shares of Kohl`s buy each year for each of the next five years. In fact, on a conference call earlier this year, CEO Michelle Gass said she expected Kohl`s spending as a result of the program to increase.
The unlikely partnership helps Amazon simplify customer tours. Kohl`s gets more walking and theoretically new customers. It`s a pretty creative solution. Find out here how it works and why it`s so brilliant. “This unique partnership combines Kohl`s strong nationwide presence and omnichannel capabilities with Amazon`s reach and loyalty,” said Michelle Gass, CEO of Kohl. . . .