Kohl's CEO Explains Company's Relationship With Amazon

Automatic TRANSCRIPT

Us about the relationship with Amazon now and are they a friend or a friend of me or how does that whole relationship work? Yeah, I would I would definitely put them in the friend category page, you know, when you meet created this relationship a few years ago and started testing and I can describe that in a moment. It definitely got a few questions like wait a minute aren't you competing with Amazon course, I would say there's plenty of market share to be had right there's billions of dollars in the kinds of products we sell but a few years ago. I mean we're looking at the incredible company they were building them tell when they had and we have assets they have and they have assets we don't have I mean we look at our you know, we get the store base. I keep talking about right healthy robust and you know another way to our earlier discussion the future of brick-and-mortar. It's not just about transacting and buying products as I mentioned. We're using them to fulfill Goods. So they're omni-channel fulfillment center as well. And so we've really dead. Challenge ourselves to think creatively about all the ways that a this this physical space can be used and serve our families. So, you know a few years ago we connected with a guy has on and talked about, you know, lots of ideas actually on how we could bring our complementary strengths. We've got this incredible store base and this consumer base. They have this tremendous reach and loyalty offer. Is there a win-win in here in can we think differently and build on each other's strengths. And so we started testing this idea where at the core of it. We accept Amazon returns and one of the insights we have about our customers. Andy is that and we knew this from our own experience customers hate dealing with returns packaging up finding the packing slip going dealing with it and we have already seen that 90% of our returns happen in the store. So how could we extend that and have that really be a skill of the company that we can leverage into other spaces and Amazon didn't have the convenience of these twelve hundred years. Is that we offer so the service and a nutshell is we take Amazon returns and we make it really easy for the customer. We have a dedicated space. It takes literally seconds to process the return the big Advantage free and the customer doesn't have to pack it to that. So literally they can just walk in with Whatever item that maybe they change their mind on and bring it to Kohl's and they're you know, they're done and what we get is we get our new traffic and importantly building a relationship with some new customers and what we're finding is we are getting new customers and we're seeing a younger customer and those are both very strategically important to us,

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