Kohl’s Announced Plans To Close Several Stores

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Kohl’s announced plans to close 27 underperforming stores across more than a dozen states in an effort to boost profitability. The closures, expected to be completed by April, represent a small portion of the retailer’s 1,150 locations. In a press release, Kohl’s emphasized its confidence in the overall health and strength of its profitable store base.

This decision is among the final moves by outgoing CEO Tom Kingsbury, who is set to step down on Wednesday. Kingsbury will be succeeded next week by Ashley Buchanan, the current CEO of arts and crafts retailer Michaels. To ensure a smooth transition, Kingsbury will remain with Kohl’s as an advisor to Buchanan and a board member until his retirement in May.

Kohl’s Corporation is a prominent American department store retail chain founded in 1962 and headquartered in Menomonee Falls, Wisconsin. As one of the largest department store chains in the United States, Kohl’s operates over 1,100 stores across the country, offering a diverse range of products, including clothing, footwear, accessories, beauty items, home goods, and more.

Kohl’s is known for its focus on delivering value to customers by offering frequent sales, discounts, and its Kohl’s Cash rewards program. The store features a blend of national brands like Nike, Levi’s, and Sephora alongside exclusive private-label products such as Sonoma Goods for Life and Croft & Barrow. The company’s partnership with Sephora has allowed it to establish mini beauty shops within its stores, enhancing its appeal to a broader customer base.

 

Kohl’s emphasizes a convenient shopping experience by integrating omnichannel services, including online shopping, in-store pickup, and returns for Amazon purchases at its locations. Its e-commerce platform complements its physical stores, enabling customers to shop seamlessly across channels.

The company has undertaken various initiatives to improve its sustainability and corporate social responsibility, focusing on reducing its environmental footprint, promoting diversity and inclusion, and supporting local communities.

Like many department stores, Kohl’s has faced significant challenges in recent years, struggling to adapt to shifting consumer behavior. According to CNN, the retailer recently warned of a larger-than-expected decline in sales for the holiday shopping season, signaling ongoing difficulties in its recovery efforts. Over the past six months, Kohl’s stock (KSS) has dropped nearly 40%.

In 2022, Kohl’s was embroiled in a contentious dispute with activist investors who pushed for dramatic changes, including spinning off its online business, selling its real estate, or taking the company private. Despite these pressures, the retailer ultimately decided against pursuing a sale, opting to focus on internal strategies for long-term stability.

Despite challenges from changing retail trends and competition from e-commerce giants, Kohl’s continues to adapt by revising store layouts, expanding product categories, and enhancing digital engagement.

Here is a list of the store locations Kohl’s is closing:

Alabama

Arkansas

California

Colorado

Georgia

Idaho

Illinois

Massachusetts

New Jersey

Ohio

Oregon

Pennsylvania

Texas

Utah

Virginia

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