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The Milwaukee Business Journal reports that Amazon and Kohl's appear to be in the process of expanding on their relationship, which to this point has centered on the department store chain accepting Amazon returns in its units.

According to the story, "In La Verne, California, Kohl’s appears to be testing the right-sizing, side-by-side concept with an Amazon grocery store. According to city records, Kohl’s owns the property, which is more than 88,000 square feet. The retailer proposed dividing its space so that Kohl’s would occupy about 50,900 square feet, and the grocery store would fill the remainder."

The move is part of Kohl's broader move to streamline its physical footprint while testing partnerships designed to generate traffic for its stores.  It already has announced tests with Aldi and Planet Fitness.

KC's View:

Kohl's has said that the partnerships work in some places, but not others.  It would be my guess that they probably work better in places where Kohl's has a stronger customer base, if only because I can't imagine the presence of an Amazon physical store making me more interested in shopping there.

On the other hand, if Amazon is paying rent … well, at least there will be some money coming in.