
Kohl’s announces closure of 27 stores and names new CEO as it grapples with declining sales and changing retail landscape.
At a Glance
- Kohl’s to close 27 underperforming stores across 15 states by April 2025.
- CEO Tom Kingsbury stepping down, to be replaced by former Michaels CEO Ashley Buchanan.
- Company faces 11 consecutive quarters of sales declines.
- Closures part of long-term growth strategy to boost profitability.
- Kohl’s expects 7-8% decline in sales for 2024.
Kohl’s Implements Strategic Store Closures
Kohl’s, the Wisconsin-based retail giant, has announced plans to shutter 27 underperforming stores across 15 states by April 2025. This move comes as the company faces significant challenges in the retail sector, including 11 consecutive quarters of sales declines. The closures are part of a broader strategy to streamline operations and boost profitability in an increasingly competitive market.
The decision affects stores in various states, including California, which will see 10 locations close. Other affected states include Alabama, Arkansas, Colorado, Georgia, Idaho, Illinois, Massachusetts, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia. In addition to the store closures, Kohl’s will also shut down an e-commerce fulfillment center in San Bernardino, California, in May 2025, shifting fulfillment responsibilities to store locations.
The news comes less than a week before Kohl's welcomes its new CEO. https://t.co/wkPQQ2cQKy
— The Business Journals (@bizjournals) January 10, 2025
Leadership Change Amid Restructuring
Alongside the store closure announcement, Kohl’s revealed a significant leadership change. CEO Tom Kingsbury will be stepping down, to be succeeded by Ashley Buchanan, the former CEO of Michaels. This transition marks a pivotal moment for the company as it navigates through challenging retail waters.
“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” – Kingsbury
Kingsbury will remain as an adviser and board member until his retirement in May 2025, ensuring a smooth transition of leadership. The change at the top comes as Kohl’s grapples with the need to adapt to shifting consumer behaviors, particularly the increasing preference for online shopping.
Impact on Employees and Future Outlook
While Kohl’s has not disclosed the exact number of employees affected by the closures, the company has stated that all impacted associates have been informed of the situation. Kohl’s is offering support to these employees through what it describes as a “competitive severance package” or the opportunity to apply for other positions within the company.
Despite these closures, Kohl’s will continue to operate over 1,120 locations across the United States, excluding Hawaii. The company remains optimistic about its future, emphasizing the strength of its profitable store base. However, Kohl’s expects a 7% to 8% decline in sales for 2024, with full-year sales to be reported in February.
In an effort to counteract declining sales in other categories, Kohl’s has introduced Babies R Us shops in 200 of its stores. This move, along with the strategic closures and leadership change, underscores the company’s commitment to adapting to market demands and positioning itself for future growth in a challenging retail environment.
Sources:
- Kohl’s to close 27 stores by April as struggling department stores works to improve sales
- Kohl’s to close 27 ‘underperforming’ stores by April. Here’s the list
- Kohl’s to Close 27 ‘Underperforming’ Stores by April, CEO Stepping Down