Kohl's, one of the largest department store chains in the US, has announced plans to close 27 underperforming stores across 14 states by April 2025.
Among the closures is the North Dallas store at 18224 Preston Road, the only Texas location affected. California will see the most closures, with 10 stores shutting their doors.
Amid Financial Struggles, Kohl's To Close 27 Stores Nationwide, Focus on Profitability
The retailer's decision to scale back operations comes as it faces declining sales, rising competition from e-commerce, and shifting consumer preferences.
According to NY Post, over the past 11 quarters, Kohl's has reported steady decreases in revenue, with same-store sales falling by 9.3% in the third quarter of 2024.
The company expects annual net sales to decline by up to 8%, reflecting the broader challenges faced by department stores nationwide.
Outgoing CEO Tom Kingsbury explained that the closures are part of a strategy to strengthen the company's long-term outlook. While acknowledging the difficulty of these decisions, he emphasized their importance in ensuring Kohl's future success.
The company has informed affected employees about the closures and offered severance packages or the opportunity to apply for other roles within Kohl's. However, the total number of employees impacted by this decision has not been disclosed.
Kohl's currently operates more than 1,150 stores across the country and remains a significant player in the retail market despite recent setbacks. The closures aim to streamline operations and focus on more profitable locations.
Kohl's Faces Retail Shake-Up with New CEO and Store Closures Nationwide
The announcement coincides with a leadership change at Kohl's. Kingsbury, who has served as CEO since early 2023, is stepping down on January 15, 2025, WFAA said.
Ashley Buchanan, a former executive at Walmart and Michaels, will take the helm, bringing experience in retail management during challenging times.
Kohl's closures highlight ongoing challenges faced by brick-and-mortar retailers. Department stores like Macy's, JC Penney, and Sears have similarly reduced operations or filed for bankruptcy in recent years. Macy's alone recently announced the closure of 66 stores nationwide.
Rising inflation, changing shopping habits, and the dominance of online retail have forced many chains to rethink their business models.
Younger consumers, particularly Gen Z, are spending less on traditional retail and more on experiences like travel and dining, further straining the sector.
