Shares of Kohl’s (KSS) popped in morning trading after the company announced a partnership with Amazon (AMZN).
PARTNERSHIP AGREEMENT: Kohl’s announced plans this morning to roll out a “smart home experience” in 10 stores across the Los Angeles and Chicago areas. Beginning in October, shoppers at these stories will be able to purchase Amazon devices, accessories and smart home devices and services directly from Amazon. Kohl’s said 1,000-square-foot “zones” within its stores will be dedicated to Amazon products, including the Echo, Echo Dot, Fire TV and Fire tablets. Customers can then schedule an Amazon expert to come to their home and install smart home devices, Kohl’s said. “We believe in the power of our store portfolio and know that our future as a best-in-class omnichannel retailer will be driven by how inventive, compelling and unique we can make our store experience,” said Michelle Gass, Kohl’s chief merchandising and customer officer. “Kohl’s and Amazon share a customer obsession and we’ve joined together to leverage each other’s strengths,” she added.
WHAT’S NOTABLE: Earlier this year, Amazon partnered with Sears (SHLD) to integrate the full line of Kenmore Smart appliances with Amazon Alexa. Following its acquisition by Amazon, Whole Foods also sells Echo devices in its stores, and Best Buy (BBY) sells some Amazon and Alexa-enabled items in its stores. In August, Kohl’s reported quarterly earnings, with EPS and revenue narrowly beating estimates, though its comp sales declined 0.4% from the year ago period. Kohl’s said recently it will open four small format, 35,000-square-foot stores in the third quarter in support of efforts to enhance store profitability. By the end of 2017, nearly half of Kohl’s stores will be operationally smaller, it said.
PRICE ACTION: Shares of Kohl’s are up 5.2% in late morning trading to $42.50.
