Dive Brief:
- Integrating another returns service into its business, Kohl’s is introducing The Return Drop at Kohl’s across more than 1,100 U.S. locations, the retailer announced Thursday.
- Through a partnership with Narvar and Inmar Post-Purchase Solutions, the retailer is accepting returns from brands like Carhartt, Hanes and Levi’s at its stores, per the press release.
- After initiating the returns process, shoppers can choose “Kohl’s Drop Off” to receive a Narvar-generated QR code, then bring the item and QR code to a local Kohl’s location. Shoppers don’t need a box or shipping label to make the return, the company said.
Dive Insight:
Kohl’s collaboration with Narvar and Inmar Post-Purchase Solutions signals the retailer’s expansion of its returns services. In 2019, the department store extended its Amazon returns service across its 1,150 locations, which executives have touted as boosting foot traffic.
For Narvar sellers, the deal broadens their customers’ return options, Amit Sharma, founder and CEO of Narvar, said in a statement.
“Providing shoppers with convenient services is critical to Kohl’s ongoing commitment to the customer experience,” Gregg Barta, Kohl’s executive vice president of supply chain and logistics, said in a statement. “Not only will The Return Drop at Kohl’s remove friction for customers, but it will also provide operational benefits and efficiencies to participating retailers and brands.”
Besides bringing another return option to its physical stores, Kohl’s is shifting its focus away from its digital business and concentrating on its physical stores. In its Q3 2023 earnings call, CEO Tom Kingsbury said the department store’s digital arm “is really what’s bringing us down.”
As Kohl’s concentrates on its physical stores, the retailer is working to reverse its losses. In its full-year results for 2023, the company reported a 3.4% dip in net sales year-over-year, and its comparable sales decreased by 4.7%.
The declines continued into its first quarter this year, during which the company saw its net sales drop by 5.3% year-over-year to $3.2 billion. Kohl’s comparable sales also decreased by 4.4% from the previous year. In its Q1 earnings call, Kingsbury said the retailer is “enhancing the customer experience, accelerating and simplifying our value strategies, managing inventory and expenses with discipline and further strengthening our balance sheet.”
