Kohl’s to Close 27 Underperforming Stores by 2025 Amid Sales Decline

Kohl’s Corp. announced plans to close 27 underperforming stores by April 2025 as part of a broader transformation strategy to address declining sales. The Menomonee Falls, Wisconsin-based retailer confirmed the closures on Jan. 9, 2024, stating that affected employees have been informed and offered severance packages or opportunities to apply for other roles within the company.

The decision reflects Kohl’s ongoing efforts to streamline operations and focus on profitable locations. “While Kohl’s continues to believe in the health and strength of its profitable store base, these specific locations were underperforming stores,” the company said in a statement. The closures will leave Kohl’s with more than 1,120 stores nationwide.

In addition to the store closures, Kohl’s will shutter an e-commerce fulfillment center in San Bernardino, California, by May 2025. The facility, operational since 2010, is no longer necessary as the company shifts to fulfilling customer orders directly from store locations. “We always take these decisions very seriously,” said outgoing CEO Tom Kingsbury, who will step down on Jan. 15, 2024. “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.”

Ashley Buchanan, former CEO of Michaels Companies, will succeed Kingsbury as CEO. Kingsbury will remain as an advisor and serve on Kohl’s board until his retirement in May 2025. The company reported a 7% to 8% decline in sales for 2024 and is expected to release its full-year financial results in February.

The closures come amid broader challenges in the retail sector, with competitors like Macy's also facing similar pressures. Kohl’s has not yet released a detailed list of the 27 stores slated for closure, but the move underscores the company’s focus on adapting to changing consumer habits and improving profitability.