Kohl’s announced on Thursday that it will close 27 stores across the United States this year as part of its strategy to reduce underperforming locations. The department store chain, which has been facing the economic challenges of post-pandemic retail shifts, continues its efforts to remain competitive in a landscape where many consumers prefer online shopping over in-person visits.
Why Is Kohl’s Closing Stores?
According to Kohl’s, the decision to close certain stores is driven by the underperformance of these locations. While the company remains confident in the overall strength of its store base, these particular sites have not met expectations. The company said it aims to optimize its resources and focus on locations with stronger performance, hoping to avoid the fate of competitors like Sears and JCPenney, both of which declared bankruptcy after experiencing similar financial difficulties.
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Kohl’s Closures by State
The planned closures will take place across multiple states, with California seeing the highest number of shutdowns. The full list includes:
- California: Balboa (San Diego), Encinitas, Fremont, Mountain View, Napa, Pleasanton, Sacramento (Point West), San Rafael, San Luis Obispo, Westchester.
- Alabama: Spanish Fort
- Arkansas: Little Rock West
- Colorado: Arapahoe Crossing (Aurora)
- Georgia: Duluth
- Idaho: Boise
- Illinois: Plainfield, Spring Hill (West Dundee)
- Massachusetts: Stoughton
- New Jersey: East Windsor
- Ohio: Blue Ash, Forest Park (Cincinnati)
- Oregon: Portland Gateway
- Pennsylvania: Pottstown
- Texas: North Dallas
- Utah: Riverton
- Virginia: Herndon, Williamsburg
The closures are expected to be completed by April 2025.
Impact on Employees
Kohl’s has assured that all affected employees have been notified and offered competitive severance packages. Additionally, they have the option to apply for open positions within the company at other locations.
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Will Kohl’s Cash Still Be Accepted?
Customers can still use their Kohl’s Cash at closing locations, as it remains valid for 30 days after earning it. Kohl’s Rewards, including Kohl’s Cash, will continue to be honored at these stores until their closure.
The Bigger Picture: The Decline of Brick-and-Mortar Retail
The closures come as part of a larger trend in the retail industry, with more than 25% of major U.S. shopping malls expected to close by 2027, according to Green Street Advisors. Many retailers are reshaping their store footprints in response to shifting consumer behavior and migration patterns. The closures also reflect how Kohl’s, like many others, is trying to adapt to a post-pandemic retail world where online shopping is dominant.
Leadership Changes at Kohl’s
Alongside store closures, Kohl’s is experiencing leadership transitions. CEO Tom Kingsbury will step down, with Michaels CEO Ashley Buchanan taking over this month. The shift in leadership signals a continued effort to adjust Kohl’s strategies for long-term growth.
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Looking Ahead: Kohl’s Future Strategy
Despite the closures, Kohl’s remains optimistic about its future. Industry experts like Alex Beene from the University of Tennessee at Martin suggest that the closures are part of the company’s plan to adapt to changing consumer behavior and to focus resources on more profitable locations. R.J. Hottovy from Placer.ai highlights that many of the closures are concentrated in California, where demographic shifts and population declines have impacted retail performance.
By reducing its footprint and focusing on core locations, Kohl’s hopes to remain competitive in the evolving retail landscape and avoid the pitfalls of other struggling chains.
