Kohl’s has announced plans to close 27 underperforming stores across 15 states by April 2025 as part of its broader strategy to address ongoing financial challenges and improve operational efficiency. This move marks another significant step for the retailer as it faces a changing retail landscape and sustained pressure from e-commerce competitors.
The store closures will impact less than 3% of Kohl’s approximately 1,150 locations nationwide. Affected employees have been informed and will receive severance packages or be offered opportunities to transfer to other nearby stores. This restructuring follows 11 consecutive quarters of declining sales, as noted by AP News.
The closures span several major markets, with California being the hardest hit, where ten locations are set to shut down. Additional closures include stores in Ohio, Massachusetts, and Virginia, according to Cincinnati.com. Among these, a 20-year-old location in Herndon, Virginia, is slated to close on January 18, 2025. This announcement also coincides with plans to shut down an e-commerce fulfillment center in San Bernardino, California, later this year, citing operational efficiencies.
Kohl’s leadership transition adds another layer to these developments. Ashley Buchanan, former CEO of Michaels, is set to take over as CEO next week. Outgoing CEO Tom Kingsbury emphasized the importance of focusing on partnerships, such as the collaboration with Sephora, and enhancing in-store experiences to drive foot traffic. However, despite efforts to innovate, sales in key categories like apparel and footwear have remained sluggish.
The closures also come amid broader challenges in the retail industry. Inflation, evolving consumer preferences, and increased competition from online platforms have created significant hurdles for traditional department stores. Other major players, including Macy’s, have similarly announced store closures to adapt to these shifting dynamics, as reported by The Sun.
While Kohl’s faces these challenges, it continues to explore growth areas such as home goods and expanded digital services. As the company navigates this restructuring phase, its ability to balance cost-cutting measures with customer-focused initiatives will play a pivotal role in determining its long-term success.
Meta Description: Kohl’s announces the closure of 27 underperforming stores by April 2025 as part of its restructuring plan. Learn more about how this move impacts employees and the retail industry.
Title Tag: Kohl’s to Close 27 Stores Nationwide in Restructuring Plan
Slug: kohls-store-closures-nationwide-2025
Feature Image Name: kohls-store-closure-announcement.jpg
Alt Text: A Kohl’s store entrance with a sign indicating the store’s upcoming closure.
