Kohl's mobile wallet now 30% of mobile traffic

Kohl's is seeing big gains from its burgeoning mobile wallet and loyalty program—and plans for a bigger marketing push and expansion leading into the holiday season.

Roughly 30 percent of Kohl's mobile traffic is related to use of its mobile wallet.

"We continue to build a world class digital experience," Kevin Mansell, Kohl's president and CEO said during a conference call with analysts. "Response to our new app has been very favorable with over 2 million downloads this year alone and we now have over 8 million total users. Our wallet feature within our app has also been a big success, with about 30 percent of our mobile traffic related to wallet use."

Kohl's expanded its Yes2You mobile wallet program in October, 2014. The program lets shoppers earn points for purchases online and in-store, and features a mobile wallet inside the app—a distinctive feature that has helped boost Kohl's to become one of the fastest growing apps in the market. The app grew 800 percent through May following its overhaul.

Kohl's plans to build on its mobile success by rolling out more localized offers and launching a mobile platform for the option to buy online and pick up in-store. BOPIS for mobile is on track to launch in August, said Mansell, with a marketing push through September and October to promote the program before the holidays.

The Yes2You loyalty program added 2 million members in the recently completed second quarter and now has 32 million members. "More than half of all transactions are now with loyalty members and almost three-quarters of Kohl's charged transactions are also loyalty member transactions," he said. "We intend to launch a number of new enhancements and will celebrate the anniversary of last year's launch in October with a major event."

Online sales are generating more than 20 percent of Kohl's order growth, and BOPIS is currently between 2 and 3 percent of online orders. And expanding the mobile feature set to better enable BOPIS should help grow that business. Growing BOPIS is a big deal for many retailers, including Kohl's.

"BOPIS is the best thing that ever happened in e-commerce," Mansell said. "Buy online, pick up in-store from a profitability [standpoint] is the best thing you can get, because you're not shipping it. So you save the $5 to $6 per package that it costs to ship it to the house and we're seeing attachment sales of about 20 to 25 percent, depending on the time of the week."

Kohl's has been betting big on digital, revamping all digital platforms and investing heavily in mobile. Digital is so important to the retailer that it recently tried to enforce a non-compete clause to stop its former CIO Janet Schalk from taking a position with another retailer, Hudson's Bay.

For more:
-See this conference call transcript on Seeking Alpha

Related stories:
Kohl's app grows 800% since overhaul
Kohl's CIO Janet Schalk: Out with the legacy systems and in with the new
Kohl's sues former CIO for joining Hudson's Bay
Kohl's comeback plan
Kohl's rolls out Yes2You rewards program nationwide

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