KSS upside from Amazon partnership via /r/wallstreetbets #stocks #wallstreetbets #investing

Not sure how many of you know but $KSS (Kohl’s) has a partnership with Amazon. It’s quite basic but I find it very impactful for KSS.

You can return Amazon products for free back to a KSS store. Not only you don’t need to package it but you also get a Kohl’s discount in cash.

This partnership drives a lot of store traffic mainly for folks who do not live in a managed building where you can leave your package with the doorman.

This is much simpler that other options and sometimes these customers make purchases in the store.

In the last 3 years I visited Kohl’s 5 times and it was always to make a return for Amazon. I always got discount dollars and 4 times I spent more than $100 in the store.

I went again today and it was full of people returning Amazon products, I know it’s post holiday and you would see more but this is still potential customers walking in.

PS. They are debt free, growing double digits a year and pay dividends.

Positions: I sold 1 $45 PUT for Jan 2024 for $1020 in credit.