
Kohl’s announces closure of 27 stores and a distribution center, signaling a strategic shift in the face of retail industry challenges.
At a Glance
- Kohl’s to close 27 underperforming stores and a distribution center by spring 2025
- Closures affect 15 states, including California, Ohio, and Texas
- CEO Tom Kingsbury cites long-term growth strategy as reason for closures
- Employees offered severance packages or opportunities to apply for other roles
- Kohl’s CEO stepping down, with Ashley Buchanan from Michaels set to take over
Kohl’s Strategic Restructuring Amid Retail Challenges
In a move that echoes broader retail industry trends, Kohl’s has announced the closure of 27 underperforming stores and a distribution center by spring 2025. This decision comes as part of the company’s efforts to adapt to the rapidly changing retail landscape and ensure long-term growth. The closures span 15 states, including Alabama, Arkansas, California, Colorado, Georgia, Idaho, Illinois, Massachusetts, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia.
The San Bernardino, California, E-commerce Distribution Center is also slated for closure by May. Despite these closures, Kohl’s maintains a significant presence with over 1,150 locations across the United States, excluding Hawaii. The company has expressed confidence in the profitability of its remaining store base, suggesting that this move is a calculated step towards optimizing operations.
Less than a week before Kohl's Corp. welcomes new CEO Ashley Buchanan, the national retailer announced on Thursday it would close 27 underperforming locations by April 2025, including the store in Stoughton. https://t.co/96FaP6H8sK
— Boston Business Journal (@BosBizJournal) January 12, 2025
Employee Support and Leadership Transition
Kohl’s has demonstrated a commitment to supporting affected employees through this transition. The company is offering competitive severance packages or the opportunity to apply for other roles within the organization. This approach aims to mitigate the impact on workers while facilitating the necessary restructuring.
“All associates have been informed, and offered a competitive severance package or the ability to apply to other open roles at Kohl’s” – company officials
In addition to the store closures, Kohl’s is undergoing a leadership transition. CEO Tom Kingsbury is stepping down, with Ashley Buchanan from Michaels set to take over. This change in leadership suggests potential shifts in strategy and outlook for the company moving forward.
Broader Retail Industry Trends
Kohl’s decision to close underperforming stores is not an isolated incident in the retail sector. It follows a similar announcement by Macy’s, which plans to close 150 stores over three years, with 64 locations already shuttered by the end of 2024. These moves reflect the ongoing challenges faced by traditional brick-and-mortar retailers in an increasingly digital marketplace.
“We always take these decisions very seriously” – CEO Tom Kingsbury
The retail industry continues to evolve, with companies like Kohl’s and Macy’s taking strategic steps to adapt to changing consumer behaviors and economic pressures. As these established retailers navigate the challenges ahead, their actions will likely shape the future landscape of American retail.