Amazon opens shop inside Kohl’s


Daphne Howland, retail reporter at Retail Dive article around Amazon setting up shop in Kohl’s with Jim Fosina, CEO Fosina Marketing Group commentary.

  • Amazon opens shop inside Kohl’s
    • Could Kohl’s be a takeover opportunity for Amazon? Such talk is premature, according to Jim Fosina, CEO of Fosina Marketing Group. For one thing, Kohl’s is no Whole Foods. “A potential deal with Kohl’s is vastly different from the Whole Foods deal, as the frequency of in store shopping visits is much lower in Kohl’s,” he said in an email to Retail Dive. “Perishables drive greater frequency of shopping and potentially much larger aggregate margins per customer than the non-perishable Kohl’s customer visit.”
    • Still, the tie-up will yield information about an expansion of any kind, Fosina says. “I suspect that Amazon will get a full understanding whether Kohl’s is the right partner based on unit sales within the Kohl’s stores and by gaining insight from the data they receive from Kohl’s customers (including their email addresses) as to the profile of the Kohl’s /Amazon customer,” he said. “Are the bulk of these customers already Amazon customers? What percentage? What is the value of the Amazon/Kohl’s customer currently in the Amazon file? Amazon will determine whether the presence in store warrants further investment. on their part.”
    • If Amazon believes that having an in-store presence in Kohl’s, with a limited set of products and that will allow them to sell newly acquired customers a wider range of products and services online, they will continue, he also said. “If not…they will end the relationship in these stores quickly.”
    • This is an chance for Amazon to explore customer acquisition from a set of consumers who aren’t likely to be Prime members, Fosina also said. “Amazon has a HUGE opportunity to acquire new customers,” he said. “Amazon obviously sees the profile of the Kohl’s customer as a market segment that they are desirous of having. Amazon won’t settle until the day that they can say that more than 80% of the consumers in the USA and the world spend a significant percentage of their product related purchases within the control of the Amazon interface.”