News Summary
Kohl’s has announced the closure of 27 underperforming stores across the United States as part of a strategy to improve its financial health. The department store, facing a significant decline in sales and operating income, aims to reshape its future amidst ongoing retail challenges. The closures will affect locations in various states, while employees will be offered severance packages or other job opportunities within the company. These changes come as Kohl’s anticipates further sales challenges in 2024 and prepares for a leadership transition.
Kohl’s Takes Big Steps, Closing 27 Stores Across the Country
Menomonee Falls, Wisconsin – Kohl’s, the iconic department store, is making a tough decision that could reshape the brand’s future. The retailer has announced it will be closing 27 underperforming stores nationwide by April 2025. This measure is part of a larger strategy targeting financial struggles that jolted the company in recent months.
The Reason Behind the Closures
Facing a challenging retail landscape, Kohl’s is striving to improve its financial health and future outlook. In the third quarter of 2024, the brand saw a startling decrease in sales, reporting net sales of just $3.5 billion, which is a significant drop of 8.8% from the previous year at $8.8 billion. Alongside this, comparable sales fell by 9.3% from 2023. The company’s operating income also took a hit, plummeting from $157 million to $98 million, while net income nosedived from $59 million to $22 million over a year.
How Many Stores Are Affected?
With about 1,150 stores scattered across the nation, these closures represent less than 3% of Kohl’s total locations. While some towns might feel the pinch, not all states are losing stores. Notably, there will be no closures in South Carolina or North Carolina, where 17 stores currently operate.
Where Are the Closures Happening?
The 27 stores that will close are spread across various states, including:
- Alabama
- Arkansas
- California
- Colorado
- Georgia
- Idaho
- Illinois
- Massachusetts
- New Jersey
- Ohio
- Oregon
- Pennsylvania
- Texas
- Utah
- Virginia
Additionally, an e-commerce fulfillment center in San Bernardino, California, will also shut down in May 2025, adding to the overall operational changes that Kohl’s is enacting during this transitional period.
A Commitment to Employees
As this new chapter unfolds, Kohl’s has cared for their employees by informing all associates at the affected stores ahead of time. Each of these team members is being offered a competitive severance package or, if desired, the chance to apply for other roles within the company. This decision shows Kohl’s acknowledgment of the challenges faced by individuals during such transitions.
Looking Ahead
The closures come at a time when Kohl’s anticipates more sales challenges for the 2024 fiscal year. The company has also drawn the attention of activist investors, who are urging improvements in stock performance and calls for strategies to tackle lagging sales figures.
In an added layer of change, Tom Kingsbury is set to step down as CEO on January 15, 2025, with Ashley Buchanan slated to take over the leadership mantle. Leadership changes could bring new thinking to Kohl’s, especially as the company emphasizes optimizing store efficiency and enhancing fulfillment capabilities through advanced technology.
Wrapping It Up
As the retail climate continues to shift, Kohl’s is taking bold steps to ensure its future viability. While it’s never easy to announce store closures, the company’s commitment to improving operations, supporting their workforce, and navigating financial challenges is crucial. Going forward, many are watching to see how these changes will affect the beloved department store and its customers.
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Author: STAFF HERE FLORENCE WRITER
FLORENCE STAFF WRITER The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.