Kohl’s has announced a major decision to close 27 stores and a distribution center, sparking questions about the company’s future.
At a Glance
- Kohl’s is closing 27 underperforming stores and a distribution center by spring.
- CEO Tom Kingsbury is stepping down, with Ashley Buchanan taking over.
- Employees will receive severance packages or can apply for other positions at Kohl’s.
- Closures affect 15 states including California, Ohio, and Texas.
Kohl’s Announces Store Closures
Kohl’s plans to shut down 27 underperforming stores and a distribution center, affecting states such as California, Ohio, and Texas by spring. This move is part of a strategic shift towards sustainable growth in the challenging retail landscape. The closures echo similar actions by competitors like Macy’s, which is closing 150 locations over three years. Kohl’s decision affects over a dozen states, highlighting the widespread impact of these closures.
The announcement includes the closure of the San Bernardino, California E-commerce Distribution Center, scheduled by May. Kohl’s leadership emphasizes the necessity of these measures for the future success of the company. However, with approximately 1,150 stores still operational across the U.S., Kohl’s remains committed to maintaining a strong retail presence and seeing profitable growth in its remaining stores.
Kohl's Corp. will close 27 stores nationwide by April.
The store chain said the affected locations are underperforming.The news comes less than a week before a leadership transition, when Ashley Buchanan succeeds Tom Kingsbury as the Menomonee Falls-based company's CEO.
States… pic.twitter.com/xJNkRT5oQh
— TheChatMan ⚔️🛡 (@The_ChatMan) January 10, 2025
Leadership Changes at Kohl’s
As part of the strategic shift, Tom Kingsbury will step down as CEO of Kohl’s, with Ashley Buchanan from Michaels set to succeed him. This leadership transition may herald further strategic adjustments as Kohl’s looks to navigate an evolving retail landscape. The company assures that the new leadership will aid in steering towards sustained success and stability, reflecting confidence in overcoming industry challenges.
“We always take these decisions very seriously” – CEO Tom Kingsbury
Kohl’s company officials express gratitude towards employees during this transition, aiming to support them through severance packages or potential job relocations within the company. “All associates have been informed, and offered a competitive severance package or the ability to apply to other open roles at Kohl’s,” stated company officials. This gesture seeks to mitigate the impact of job losses on affected employees.
KOHL'S CLOSING STORES: The department store said it was closing 27 underperforming locations in 15 states by April — a fraction of its 1,150 store base — as the struggling department store chain aims to boost profitability and improve sagging sales. https://t.co/9cVXaWp9jo pic.twitter.com/7Bv0aDFoH5
— WFLA NEWS (@WFLA) January 12, 2025
Impact and Future Prospects
The closures by Kohl’s are reflective of a broader trend in retail, with similar announcements by Macy’s to close multiple stores. Despite these challenges, Kohl’s remains optimistic about the potential profitability and success of its remaining stores. Entrusted with navigating these changes, the new leadership under Ashley Buchanan will face the crucial task of adapting to shifting consumer behaviors and market conditions.
“Kohl’s thanks our associates for their work and is working to support our associates during this transition.” – company officials
With a focus on strengthening its core business, Kohl’s is adapting its strategy to remain competitive. The retail giant assures continued dedication to customer satisfaction and operational efficiency, reinforcing confidence in its future trajectory while navigating the shifts in the retail industry landscape.
Sources
1. Kohl’s to close 27 ‘underperforming’ stores by April. Here’s the list
2. Kohl’s to Close 27 ‘Underperforming’ Stores by April, CEO Stepping Down
