Taking a Leap: Kohl's Introduces The Return Drop
Nationwide implementation of Kohl's Return Drop Service for customer convenience.
In a game-changing announcement, Kohl's has decided to take a giant stride by implementing The Return Drop at Kohl's across over 1,100 US locations, as revealed on Thursday.
The retail titan has joined forces with Narvar and Inmar Post-Purchase Solutions to make this revolutionary step. Now, shoppers can easily return items from brands like Carhartt, Hanes, and Levi's at their nearest Kohl's store. Once the return process is initiated, customers can select "Kohl's Drop Off" to receive a Narvar-generated QR code. They can then bring the item and QR code to their local Kohl's store, without the need for a box or shipping label.
This collaboration marks a significant expansion of Kohl's return services, which they had already extended to include Amazon returns across 1,150 locations back in 2019. This move was hailed as a foot-traffic booster by the company's executives.
For vendors selling through Narvar, this partnership offers a broader range of return options. Amit Sharma, founder and CEO of Narvar, declared, "Offering convenience to customers is crucial to Kohl's commitment to an outstanding customer experience."
Meanwhile, Kohl's is redirecting its focus towards its physical stores, veering away from its digital business. In a bid to reverse its losses, the retailer is working tirelessly to enhance its in-store experience. In its Q3 2023 earnings call, CEO Tom Kingsbury admitted that the digital arm was pulling the company down.
Kohl's isn't doing too well financially. Its net sales dipped 3.4% in its full-year results for 2023, and its comparable sales decreased by 4.7%. The declines continued into Q1 2024, with net sales dropping by 5.3% year-over-year to $3.2 billion. Kohl's comparable sales also decreased by 4.4% compared to the previous year. Kingbury stated, "We are enhancing the customer experience, accelerating and simplifying our value strategies, managing inventory and expenses with discipline, and further strengthening our balance sheet."
Although there's no mention of a specific expansion of returns services in 2023, Kohl's strategic shifts and alterations in its partnership with Amazon demonstrate its adaptability to evolving customer behavior and business objectives.
[1] source: https://www.economist.com/business/2021/05/08/why-kohl-is-ditching-amazon-returns
- Kohl's, by partnering with Narvar and Inmar Post-Purchase Solutions, is initiating The Return Drop, allowing customers to effortlessly return items from brands like Carhartt and Levi's at any of their 1,100 US locations.
- This collaboration with Narvar offers vendors a broader range of return options, aligning with Kohl's commitment to providing an exceptional customer experience.
- Amidst financial struggles, as shown by a 3.4% drop in net sales in Kohl's full-year results for 2023, the retailer is redirecting its focus towards improving the in-store experience and streamlining its value strategies.
- The strategic shift away from a digital-centric business model is a response to the observation that the digital arm has been negatively impacting Kohl's financial performance.
- The implementation of The Return Drop and the extension of return services to include Amazon in 2019 were seen as beneficial moves, serving as foot-traffic boosters for Kohl's business.
- The technology-driven retail industry is witnessing adaptability from Kohl's, as the company continues to evolve its return services in response to changing customer behavior and business objectives.
