Kohl’s, the prominent department store chain, announced plans to close 27 underperforming stores across 15 states by April 2025. This move is part of the company’s broader restructuring strategy to address declining sales and adapt to evolving consumer habits.
The decision will impact less than 3% of Kohl’s nationwide footprint, which includes over 1,150 stores. Employees at the affected locations have been notified and will be offered severance packages or opportunities to transfer to other stores. Among the closures, California will see the most significant impact, with ten stores set to close, as reported by The Sun. Other states affected include Ohio, Massachusetts, and Virginia, according to Cincinnati.com.
The closures coincide with plans to shutter one of Kohl’s e-commerce fulfillment centers in San Bernardino, California, later this year. This facility, which handles online orders, will be replaced by newer, more efficient centers. As highlighted by AP News, these changes are aimed at streamlining operations and improving profitability in a challenging retail environment.
Kohl’s has faced significant hurdles over the past three years, with declining sales in key categories such as apparel and footwear. The retailer has also struggled to compete with online giants like Amazon, which continue to capture market share. Despite these challenges, Kohl’s has sought to innovate through initiatives such as its partnership with Sephora. This collaboration has seen over 900 Sephora mini-shops added to Kohl’s locations, driving incremental foot traffic.
The closures come at a pivotal time for the company as Ashley Buchanan, a veteran in the retail industry and former CEO of Michaels, takes the helm as Kohl’s new CEO next week. Outgoing CEO Tom Kingsbury has emphasized that the restructuring efforts are necessary to ensure long-term success. “While these decisions are difficult, they allow us to refocus resources on our strongest markets and enhance our ability to serve customers,” Kingsbury stated in a memo to employees.
The broader retail industry has faced similar challenges, with Macy’s and JCPenney also announcing store closures in recent years. Analysts at The Sun and AP News have noted that rising operational costs, inflation, and shifting consumer preferences have made it increasingly difficult for traditional department stores to thrive.
As Kohl’s navigates these changes, the company is doubling down on digital transformation and new product offerings. The coming months will test the effectiveness of its restructuring plan and leadership transition, both of which are critical to reversing the current trend of declining sales.
Andrew Parker is a versatile journalist based in the UK who covers a wide range of news topics with depth and precision. With an insatiable curiosity and a commitment to delivering unbiased reporting, Andrew brings readers up-to-date on the most significant events and stories shaping the world.
