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Kohl's on Tuesday announced it will start accepting returns for items purchased on Amazon at all of its stores across the country, starting in July. This marks an extension of a partnership between Kohl's and Amazon that dates to the spring of , when Kohl's began selling Amazon gadgets — like its smart-home products — at some stores, and started handling Amazon returns at about 80 locations.

That more recently grew to Kohl's stores, the retailer said Tuesday, and it will now roll out to more than 1, locations across the U. She added, this is part of the company's bigger plan to "drive traffic" to stores and "bring more relevance" to shoppers. With this service, Kohl's says it's accepting "eligible" Amazon items — without a box or label — at no additional cost for the customer.

It says it then packages the items and sends them back to one of Amazon's return centers. Meanwhile, Kohl's recently said it's selling Amazon products in more than stores, now. That's after Amazon announced in March that it planned to shutter all of its pop-up shops across the country. Kohl's is testing other ways to drive traffic to its stores, too, beyond collaborating with Amazon.

It's been dividing some of its stores to make room for tenants like grocery chain Aldi and gym operator Planet Fitness.

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The hope for Kohl's is that people who take frequent trips to pick up groceries or workout will stop in and buy something. Analysts say this is one advantage Kohl's has over its department store chain rivals, like Macy's and J. The company has more flexibility with its real estate since its stores are typically situated in strip malls, or are stand-alone, instead of being at traditional, enclosed shopping malls. There's some early reported evidence that Kohl's tie-up with Amazon is paying off.

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Data from Earnest Research found that sales at Kohl's stores in Chicago — a market where Kohl's initially started testing accepting Amazon returns in — outpaced sales nationwide last year. Sign up for free newsletters and get more CNBC delivered to your inbox. Get this delivered to your inbox, and more info about our products and services.

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