
Kohl’s faces significant challenges as it announces the closure of 27 stores and a distribution center across 15 states alongside a major leadership change.
At a Glance
- Kohl’s will close 27 underperforming stores and a distribution center by spring.
- The closures span major states like California, Ohio, and Texas.
- Severance packages and job placements are offered to affected employees.
- Ashley Buchanan set to replace Tom Kingsbury as CEO.
Kohl’s Strategic Store Closures
Kohl’s has decided to close 27 underperforming stores and a distribution center by spring. This decision affects stores across Alabama, Arkansas, California, Colorado, Georgia, Idaho, Illinois, Massachusetts, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia. The challenge of changing consumer habits necessitated these closures as 27 locations are set to shut doors, including a significant distribution center in San Bernardino, California by May.
The action mirrors Macy’s decision to shutter 150 locations, spotlighting an industry-wide trend for retail giants. CEO Tom Kingsbury emphasized the importance of these steps as essential to maintaining the company’s long-term health. Kingsbury expressed gratitude for the staff’s contributions, offering them competitive severance packages and job placement opportunities. “We always take these decisions very seriously,” Kingsbury stated, indicating the weight of such corporate strategies.
Leadership Transition Amid Changes
The resignation of Tom Kingsbury as CEO marks a pivotal leadership transition for Kohl’s. Ashley Buchanan, formerly of Michaels, will step into this critical role. Buchanan’s background suggests a strategic focus on evolving Kohl’s business amidst the rapid retail changes. The leadership shift comes at a crucial time as the company navigates these operational cutbacks. Kohl’s reiterates its confidence in Buchanan to pilot the brand through these challenging periods and ultimately secure stability and growth.
Kohl’s thanks our associates for their work and is working to support our associates during this transition.
Despite the reduction in its store count, Kohl’s continues to operate over 1,150 locations across the United States, excluding Hawaii. The company remains optimistic about the profitability of its remaining stores, reinforcing a belief in the robustness of the existing store base despite the closures. This consolidation is seen as a means to bolster the company’s growth footing for the foreseeable future.
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
Industry Trends and Kohl’s Future
The closure of Kohl’s locations highlights broader industry challenges as brick-and-mortar retailers adapt to new consumer trends. As Kohl’s prepares for its forthcoming changes, the retail landscape continues evolving. Macy’s parallel store closures signal significant shifts across the retail sector, with both companies striving to adjust operations for improved profitability. The movement towards optimized retail network sizes marks a notable shift in industry strategies in response to dynamic market conditions.
All associates have been informed, and offered a competitive severance package or the ability to apply to other open roles at Kohl’s.
The future of Kohl’s under Buchanan’s leadership depends on the organization’s ability to adjust and flourish amid competitive pressures. This pivotal era could test Kohl’s resilience as it balances store operations with financial directives, all while aiming to enhance customer engagement in a transformed retail context.
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