Kohl’s to Close 27 Underperforming Stores by April 2025

A Kohl's store with signs indicating upcoming closures amid financial struggles.

News Summary

Kohl’s plans to close 27 stores nationwide by April 2025 as part of a strategy to address its ongoing financial struggles. The closures, which affect 15 states, come amid significant declines in sales and operating income. The company aims to reallocate resources for better efficiency while offering support to impacted employees. Executive changes are also in the works as Kohl’s adapts to the evolving retail landscape.

Kohl’s to Close 27 Underperforming Stores Nationwide by April 2025 Amid Financial Struggles

In an effort to turn things around amid ongoing financial pressures, **Kohl’s**, a familiar name in retail, has decided to shutter 27 underperforming stores across the United States by April 2025. This significant move is part of a larger strategy aimed at tackling the company’s recent financial struggles, which have left many shoppers and employees feeling the impact.

What’s Driving the Closures?

Based in Wisconsin, Kohl’s has seen a staggering decline in performance this year, with the third quarter of 2024 revealing some tough numbers to swallow. Net sales have plummeted by 8.8% to $3.5 billion, which is a far cry from the impressive $8.8 billion recorded the previous year. Furthermore, comparable sales are down 9.3%, and the company has reported a drop in operating income from $157 million to a much lower $98 million.

Net income tells a similar story, falling from $59 million in 2023 to just $22 million now. Despite the tough decisions ahead, leaders at Kohl’s are hopeful that these store closures will help them focus their resources more effectively as they navigate through these trying times.

Where Will Stores Be Closing?

The affected stores will spread out across 15 different states, including Alabama, Arkansas, California, Georgia, New Jersey, Texas, and Virginia, among others. This move will reduce the total number of open Kohl’s locations from over 1,150 to just 1,123. While shoppers in many states will notice the absence of their local Kohl’s, there have been no announcements about store closures in South Carolina or North Carolina, even though many locations in the southern U.S. are being affected.

Impact on Employees

Kohl’s is taking its social responsibilities seriously. All employees at the closed stores have been informed, and each associate has been offered competitive severance packages. They also have the option to apply for positions at other locations, ensuring that no one is left in the lurch amid these latest changes.

Additional Operational Changes

As if closing physical locations wasn’t enough, Kohl’s is also planning to shut down its San Bernardino E-commerce Fulfillment Center in California. This decision is tied to the evolving nature of retail, as the company shifts focus towards in-store fulfillment rather than maintaining such large online operations. With technology steadily changing the landscape of shopping, adapting to these realities is essential for survival.

What’s Next for Kohl’s?

The retail giant has seen its stock take a significant hit recently, falling nearly 40% within the last six months. This decline is reflective of broader challenges facing many department stores in today’s economy, especially as inflation continues to weigh heavily on consumer spending.

In a shakeup at the executive level, current CEO Tom Kingsbury will be handing over the reins to Ashley Buchanan, the current CEO of Michaels, while Kingsbury remains on as an advisor until his planned retirement in May. This could signal a new direction for Kohl’s as it faces these prolonged challenges.

A Coordinated Effort to Survive

Interestingly, Kohl’s is not alone in its efforts to streamline operations. Other major players in the retail sector, such as Macy’s, are also coordinating similar store closures as both companies grapple with declining shopper numbers amid inflationary pressures. It’s a tough climate for retail, and only time will tell how these changes will ultimately pan out.

As shoppers prepare for the changes ahead, many are left wondering what this will mean for their local communities and the broader landscape of American retail. Only time will tell if these bold moves will put Kohl’s back on the path to recovery.