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Online shoppers buy more in Kohl’s stores when picking up online orders

May 15, 2015 03:36 PM
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Apparel retailer Kohl’s Corp. completed the rollout last month of buy online, pick up in store to all its 1,164 stores, and is seeing a sales lift in stores as a result, company executives say.

Of the shoppers who come into Kohl’s stores to pick up orders they placed at Kohls.com 15-20% buy something else, chief financial officer Wesley McDonald told investment analysts this week in a call to discuss the retailer’s results for its fiscal first quarter.

The program also reduces shipping costs, McDonald said. “We had a couple of days where we had 6% or 7% of the business was, on an order perspective, was buy online pickup in store, which saves you $5 a box on average from shipping cost,” he said according to a transcript from Seeking Alpha.

Kohl’s did not disclose its online sales for the quarter. But, speaking of the store pickup program for online orders, CEO Kevin Mansell said, “Although it's early, we're extremely pleased with initial volumes and attachment sales.” Attachment sales refer to shoppers buying additional products when they come into the store to pick up an online order.

The order online, pick up in store feature is only offered now on the Kohls.com desktop site. But Mansell said it will be available on tablets and smartphones by the fall. He noted 7 million consumers have downloaded the Kohl’s mobile app and said the retailer is adding features to it.

“Utilizing our wallet in our app we are now able to deliver personalized messages which can be scanned and redeemed in-store,” he said. “We also launched voice-based search on Android and image-based search on both Android and iOS. The pace of development will actually accelerate in the second and third quarter across the mobile platform.”

While not reporting online sales, Kohl’s, No. 22 in the 2015 Internet Retailer Top 500 , reported for its fiscal first quarter ended May 2:

  • Sales of $4.123 billion, an increase of 1.3% from $4.070 billion in the same quarter a year ago.
  • Comparable-store sales improved 1.4%.
  • Net income of $127 million, an increase of 2% from $125 million a year earlier.

Of the 155 retail chains ranked in the 2015 Internet Retailer Top 500, 63 allow consumers to order online and pick up in their stores.

 

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