Kohl’s Corporation announced that it would shutter 27 of its underperforming stores in 15 states as part of a larger strategy to cut costs and enhance financial performance. The move comes after a difficult fiscal year where the retailer saw a 9.4% slump in fourth-quarter sales and a 7.2% slide in overall sales in 2024.
The store closings, originally set for March 29, are a step toward Kohl’s strategic decision to maximize its store footprint as well as lowering costs. These states will bear the brunt of the closing: California, Texas, Illinois, New Jersey, and some others. These restructuring plans further include closing down an e-commerce fulfillment center within California and a decrease in corporate employees by nearly 10% that will come with cost-saving measures.
In a statement, Kohl’s CEO Tom Kingsbury said the company needs to adjust to shifting consumer behavior and improve the company’s long-term profitability. In spite of the current difficulties, Kohl’s intends to continue investing in its smaller-format stores and digital shopping experience.
The complete list of store closures and further information regarding Kohl’s restructuring strategy can be accessed here.
