Family-oriented department store chain forges partnerships to drive traffic.

MENOMONEE FALLS, Wis. – Kohl’s is deepening its two-year-old relationship with Amazon to drive traffic to its stores.

The family-oriented department store operator is leasing vacated space in one of its locations for an Amazon grocery store, according to the Milwaukee Business Journal, which reports that Amazon will occupy roughly 40% of an 88,000-square-foot Kohl’s store in Los Angeles County.

Kohl’s in recent years has sought to turn around the business by shrinking existing locations, streamlining its offering and forging partnerships with the likes of apparel and footwear supplier UnderArmour, licensed sports gear merchandiser Fanatics and “Property Brothers” stars Drew and Jonathan Scott on home décor.

Kohl’s and Amazon struck a deal in 2018 for an Amazon returns program whereby Kohl’s accepts easy-to-return items for customers of the online retail behemoth and ships them without charge. Kohl’s officials have credited the returns program for boosting traffic after its stores reopened following coronavirus pandemic-related closures.

In an earlier collaboration, Kohl’s introduced sales of Amazon smart-home devices and other Amazon merchandise at select stores.

Kohl’s operates about 1,100 stores in 49 states and is building out its omnichannel capabilities. Like other traffic-reliant retailers, Kohl’s has seen groceries as a way to bring more shoppers into its stores. Among its first partnerships was a 2018 deal to sub-lease retail space to deep-discount grocer Aldi.

Amazon recently launched its latest experiment in brick-and-mortar retail with its first Amazon Fresh grocery store in the Los Angeles neighborhood of Woodland Hills. The store is similar to a full-service grocery store but with technology that includes smart grocery carts called the Dash Cart as well as Amazon Echo devices that help shoppers navigate the aisles. The store also uses cameras, sensors and a scale to automatically detect and log items on a digital display. The technology makes it possible for shoppers to leave the store without going through a traditional checkout line.