Multi-channel retailer tie ups: how far is too far?

So, first up Kohl’s announced a new Amazon smart home experience would be available in 10 stores across the Chicago and Los Angeles areas. And now it is accepting returns for items purchased via the e-commerce giant’s site. It has even thrown in designated parking spots near the entrances for ‘here today, gone today’ Amazon loyalists. Terms of the agreement have not been revealed.

The logic here is, this will generate more customer traffic and boost sales. Throw in the usual waffle about leveraging physical stores and boosting multi-channel capabilities and, hey presto, Kohl’s is on to a winner, say analysts. But is it really? Will this be good for the retailer in the long run? Amazon has form in this area. But unlike the Whole Foods acquisition, for instance, it has no investment stake in Kohl’s. It is, ultimately, competing for the same bunch of ever demanding customers.

Will Amazon shoppers take a look around Kohl's after they’ve dropped off items or will they skedaddle back to the comfort of their laptops and mobile devices? Is Kohl's simply paving the way for the e-retailer to improve its returns offering and sell more stuff at its expense? So many questions, so few answers at this point.

No one mention the time Staples and Radio Shack installed Amazon Lockers in their stores, or when Target said, OK, Amazon, you can run our e-commerce site, what could possibly go wrong? Amazon, of course, had the last laugh on all three occasions. And you would be a fool to bet against them emerging triumphant from the Kohl’s deal as well.