In a move to address persistent sales challenges, Kohl’s has announced it will close 27 underperforming stores across 15 states by April 2025.
The closures represent less than 3% of the company’s roughly 1,150 locations nationwide.
This decision is part of a broader strategy aimed at bolstering profitability in the face of declining sales.
The affected stores have already been identified, and employees at these locations have been notified. Kohl’s has offered severance packages to impacted staff and provided opportunities to apply for other positions within the company.
Additionally, the company plans to shut down one of its e-commerce fulfillment centers in San Bernardino, California, by May 2025, citing advances in technology and improved efficiency at newer facilities.
Sales Struggles Persist
The decision to close stores comes after 11 consecutive quarters of declining sales, particularly in categories such as apparel and footwear.
Despite efforts to revitalize its business, including partnerships with Sephora, home decor expansions, and collaborations with brands like Babies R Us, Kohl’s has struggled to regain momentum.
“This was a difficult but necessary decision to ensure the long-term health of our business,” a company spokesperson said. “We remain committed to our customers and associates as we work to strengthen Kohl’s for the future.”
Broader Industry Trends
Kohl’s closures align with a broader trend in the retail industry, where traditional department stores face mounting pressure from e-commerce giants and shifting consumer preferences.
Macy’s, for instance, has also announced extensive store closures as part of its own cost-cutting measures.
Analysts note that Kohl’s closures are part of aggressive actions to reverse declining sales and adapt to a changing retail landscape.
The company’s focus on emerging growth areas, such as its Sephora partnerships, suggests a continued effort to redefine its brand identity and attract new customers.
Future Outlook
While the closures mark a challenging chapter for the retailer, Kohl’s plans to redirect resources toward high-performing stores and invest in technologies to improve customer experience. These measures are seen as vital steps to compete more effectively in the evolving retail market.
Despite these challenges, Kohl’s remains a significant player in the industry, with a vast footprint and a loyal customer base.
How the company navigates these closures and restructures its operations will be closely watched as a barometer for the future of department store retailing in the U.S.
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