Kohl’s Announced Plans To Close Several Stores
Kohl’s is closing 27 underperforming stores across the U.S. to improve its profitability. The closures, a small fraction of its 1,150 locations, are scheduled for completion by April. The company expressed confidence in the overall strength of its remaining store portfolio.
This strategic move is among the final decisions of outgoing CEO Tom Kingsbury. He is set to step down and will be succeeded by Ashley Buchanan, the current CEO of Michaels. To ensure a smooth leadership transition, Kingsbury will stay on as an advisor until his retirement in May.
Kohl’s is a major American department store chain founded in 1962. It operates over 1,100 stores, offering clothing, home goods, and beauty products. The retailer is known for its value-focused promotions and popular Kohl’s Cash rewards program.
Its merchandise includes national brands like Nike and Levi’s, as well as exclusive private labels. A key partnership with Sephora has brought mini beauty shops inside its stores, broadening its customer appeal. The company also offers convenient services like in-store pickup for online orders.
Despite these initiatives, Kohl’s faces significant challenges. The retailer recently reported a larger-than-expected sales decline during the holiday season. Its stock value has also fallen nearly 40% in the last six months.
The company has been under pressure from activist investors. In 2022, investors pushed for a sale or a spinoff of its e-commerce business. Kohl’s ultimately resisted these calls, choosing to focus on internal strategies for a turnaround.
The store closures are part of this ongoing effort to adapt to a difficult retail environment. The full list of 27 closing locations spans more than a dozen states, including California, Texas, and Ohio.
