Kohl's department store chain has confirmed a temporary halt to its program of accepting Amazon returns at select locations. This change, part of an internal testing phase, is being rolled out in stores located in Leominster, Massachusetts; Eau Claire, Wisconsin; and Washington, Missouri.
The initiative was communicated to employees a month before its start on March 17, 2025. Positive feedback has been reported among store associates within Kohl’s employee forum, suggesting that the reasons behind the program's suspension have been well-received. However, as of March 19, 2025, Kohl’s had not updated its website to reflect these crucial operational changes.
A store associate from the Chippewa Valley Plaza in Eau Claire confirmed that their location stopped processing Amazon returns about one to two weeks prior to the official announcement. The pause in the program forms part of Kohl's broader restructuring strategy aimed at improving the company’s financial metrics amid increasing pressures in the retail space.
In 2019, Kohl’s had expanded its partnership with Amazon, allowing customers to return eligible Amazon purchases at all of its locations nationwide. This initiative was lauded as a way to enhance customer experience and generate additional foot traffic. However, a report from 2024 by The Washington Post indicated that despite the uptick in store visitors due to the Amazon returns service, it did not significantly increase Kohl's sales performance.
Kohl’s has faced ongoing challenges, as evidenced by their recent report indicating a 7.2% decrease in net sales, which fell to $15.38 billion in fiscal 2024 from $16.58 billion in the prior year. In response to these financial setbacks, Kohl's announced plans to close 27 underperforming stores by April 2025 and to reduce its corporate workforce by 10%.
In light of these developments, Kohl's reiterated its commitment to fostering a culture grounded in testing and learning. A spokesperson stated, "[We have] a test and learn culture that helps us to evolve our store experience and stay informed about customers expectations and preferences." This indicates a desire to adapt to changing retail landscapes by assessing which strategies align best with consumer behaviors.
The decision to suspend the Amazon returns program may reflect a cautious approach to inventory management and store operations, shaping future initiatives in both customer service and retail efficiency. As the company navigates its current restructuring efforts, how these changes resonate with consumers remains a pivotal question.
The ability to draw traffic through partnerships and in-store experiences is often essential for department stores in a competitive market, and Kohl's is actively reassessing its strategies to align better with current consumer patterns. Looking ahead, it remains to be seen how the evaluation of the Amazon return service and its impacts on sales will inform Kohl's future decisions.
As customer expectations evolve, Kohl's appears committed to tracking its performance closely while implementing strategic changes aimed at recovering its market position. With their recent struggles in financial outcomes and a need for a decisive shift, the adjustments to the Amazon returns program could play a significant role in shaping the future of Kohl's in the department store sector.
