Will Kohl’s self-pickup system be a difference maker?
Source: Kohl’s

Will Kohl’s self-pickup system be a difference maker?

Kohl’s thinks that it has developed a better buy online, pickup in-store system.

The retailer Wednesday said it is rolling out self-pickup on eligible orders at all of its more than 1,100 stores, with “no lines in sight.”

Customers placing orders online will receive an email from Kohl’s indicating that the purchase is ready for pickup. Once they arrive at the store, customers will click on the “Open Pickup Pass” link on their phone and head to the pickup area marked on display signage within the location. Customers will then click on “Select Pickup” and enter a four-digit code sent to them to locate the number of the bin that holds their purchase.


Orders placed will be ready within two hours.

The retailer believes this shopping option combined with the Kohl’s App and Kohl’s Pay, which applies discounts and connects purchases to customers’ Kohl’s Card accounts, will make the chain one of the easiest places to shop.

“Our customers love the convenience of same-day buy online, pickup in-store, and now we’re taking the experience to the next level,” Siobhán Mc Feeney, Kohl’s chief technology officer, said in a statement.With some of the busiest months ahead for both customers and associates, we’re excited to offer self-pickup at every store for an easier and more efficient omnichannel experience.”


The chain made the decision to scale the system after a successful pilot. Customer verbatims provided by Kohl’s reinforce the simplicity, speed and convenience of the system touted by the retailer.

“Very simple and effective process. I was able to get in and out very quickly.”

“It was very easy, entered the code and was directed to the pickup box!”

“I like the new option to self-pickup rather than waiting in line.”

Kohl’s expects the convenience factor of its new system will help attract more customers going forward. The retailer’s fleet of stores is within 15 miles of 80 percent of the U.S. population.

The upcoming holiday season will be a critical test for Kohl’s and its leadership team. The company has been under constant pressure from activist investors to take steps that may serve to monetize the business in the short term such as spinning off its real estate assets and digital operations. Kohl’s entertained bids for an outright sale of the company earlier this year but determined that offers made for the business were insufficient.

Discussion Questions

DISCUSSION QUESTIONS: How does Kohl’s stack up against retail rivals in terms of convenience? Will its new self-pickup system be a competitive difference maker?

Poll

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BrainTrust

"Kohl's self-pickup system is super convenient, as it avoids customers standing in a line to pick up their online orders. "
Avatar of David Naumann

David Naumann

Marketing Strategy Lead - Retail, Travel & Distribution, Verizon


"The combo of two-hour BOPIS order time and no line is key. Together with their loyalty programs, payment options, and app, Kohl’s is now ready to compete."
Avatar of Ken Morris

Ken Morris

Managing Partner Cambridge Retail Advisors


"The best part of this is reducing the load for Kohl’s employees shifting the pick function to the customer."
Avatar of Ananda Chakravarty

Ananda Chakravarty

Vice President, Research at IDC