Kohl’s is set to close 27 underperforming locations across the United States by April 2025, marking a significant move in the company’s ongoing efforts to optimize its store network. The closures, which represent approximately 3% of Kohl’s total store portfolio, will affect several states, including California, Texas, Alabama, Ohio, and Pennsylvania.
With over 1,150 stores nationwide, Kohl’s aims to improve its operational efficiency as it navigates a challenging retail environment. The closures come as part of a broader strategy designed to strengthen the company’s position in the long run. Tom Kingsbury, the company’s outgoing CEO, explained, “As we continue to build on our long-term growth strategy, it is important to make difficult but necessary decisions that will support the future health of our business.”
Kingsbury, who will step down on January 15, acknowledged that Kohl’s had made some missteps in its recent past. The chain has experienced a decline in sales over more than 10 quarters, prompting the need for these tough decisions.
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The closures will span multiple states, with ten stores in California alone slated for shutdown. Additional locations in Illinois, Massachusetts, and New Jersey are also on the list. In a related move, Kohl’s will also close its e-commerce fulfillment center in San Bernardino, California, in May, further streamlining its operations.
Kohl’s isn’t the only retailer undergoing restructuring. Macy’s recently announced a similar wave of closures, with 66 stores set to shut down in the coming weeks, surpassing the initial plan of 50. These closures are part of Macy’s broader strategy, which includes shutting 150 locations over the next three years, as the company focuses on investing in its strongest stores to fuel future growth.
The closures are expected to generate significant financial returns, with Macy’s projecting that the move will bring in at least $600 million. As Kohl’s continues to reshape its footprint, it will be crucial to monitor how these changes affect both the company’s financial performance and its relationship with customers.
