retail news in context, analysis with attitude

CNBC reports that at the National Retail Federation (NRF) show this week in New York City, Kohl's CEO Michelle Gass said that her company's developing relationship is anything but dysfunctional.

“I get this question, ‘Is Amazon working?’” Gass said. "Amazon is working. This returns program is working. We’re seeing the traffic. We’re getting new customers … “We’re getting a younger customer. And to what we expected, some of them were buying. ... You’re never going to get 100%. But some of them are buying.”

The story notes that "Kohl’s had said ahead of the 2019 holiday season that a nationwide rollout of the Amazon returns service was going to be a boon for its business.

"But Kohl’s same-store sales dropped 0.2% during this past November and December. It led retail analysts to call the tie-up with Amazon into question. Some say it isn’t turning out to be all that Kohl’s hyped it up to be. Some say it is benefiting Amazon more than it is Kohl’s."
KC's View:
Just because Amazon may be benefitting more doesn't mean that it is all downside for Kohl's. After all, maybe the numbers would be a lot worse for Kohl's if it didn't have Amazon customers stopping by to drop stuff off.

Here's a basic reality. If you're doing business with Amazon, almost certainly Amazon is getting the best of the deal. That's the cost of doing business with it.