Kohl’s, the popular retail chain, has announced plans to close 27 stores across more than a dozen states in a strategic move aimed at bolstering profitability. The closures, set to be finalized by April, represent only a small portion of Kohl’s vast network of 1,150 stores and have been designated as “underperforming” in a recent press release. Despite this restructuring, Kohl’s remains resolute in its confidence in the overall health and viability of its profitable store base.
The decision to shutter these locations marks one of the final actions taken by outgoing CEO Tom Kingsbury, who is stepping down from his role this week. Kingsbury will be succeeded by Ashley Buchanan, the current chief executive of arts and crafts retailer Michaels. Kingsbury will continue to serve as an advisor to Buchanan and remain on the company’s board until his retirement in May.
In a statement addressing the closures, Kingsbury emphasized the gravity of such decisions, stating, “We always take these decisions very seriously. As we continue to build on our long-term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our business for our customers and our teams.”
Kohl’s, like many traditional department stores in today’s retail landscape, has faced significant challenges adapting to evolving consumer behaviors and market trends. The company has struggled to regain its footing amidst a shifting retail environment and has not projected a robust performance for the recent holiday shopping season. Kohl’s stock has experienced a nearly 40% decline over the past six months, reflecting the challenges it has encountered.
The year 2022 saw Kohl’s embroiled in a contentious battle with activist investors who advocated for strategic changes such as spinning off its online business, selling its real estate assets, or even taking the company private. Despite these pressures, the retailer ultimately decided against pursuing a sale in 2022.
Kohl’s store closures come on the heels of a similar announcement by Macy’s, a fellow department store chain. Last week, Macy’s unveiled plans to close 66 locations in the near future as it grapples with attracting customers in the face of inflationary pressures.
The following locations are among those slated for closure by Kohl’s:
– Alabama: 21000 Town Center Ave. (Spanish Fort)
– Arkansas: 13909 Chenal Pkwy (Little Rock)
– California: 5505 Balboa Ave. (San Diego), 134 N. El Camino Real (Encinitas), 43782 Christy St. (Fremont), 350 Showers Dr. (Mountain View), 1116 1st St. (Napa), 4525 Rosewood Dr. (Pleasanton), 1896 Arden Way (Sacramento), 5010 Northgate Dr. (San Rafael), 205 Madonna Rd. (San Luis Obispo), 8739 S. Sepulveda Blvd. (
