The retail environment, already shaken by the closures of chains such as Big Lots and Party City, faces more closures with Kohl’s announcing it will close 27 of its stores.
The closures in 15 states are expected to take place in April. Each of the locations scheduled for closure were identified as “struggling,” the retailer said. The company will also close its e-commerce fulfillment center in May when the facility’s lease expires.
Kohl’s shares plummet
Kohl’s said in November that its net sales for the third quarter fell almost 9% from a year earlier, to $3.5 billion. The company reported net income of $22 million, down from $59 million in the same period in 2023. Kohl’s shares have fallen more than 50% over the past 12 months.
“We always take these decisions very seriously,” said Tom Kingsbury, former CEO of Kohl’s, in a statement. “As we continue to develop our long-term growth strategy, it is important that we also take difficult but necessary steps to support the health and future of our business for our customers and our teams.”
Kingsbury resigned from her position in early January, but remains on Kohl’s board of directors. Ashley Buchanan, former CEO of Michaels, is the new CEO of Kohl’s.
What will happen to the employees of these stores?
Many large traditional retailers continue to reduce their physical presence. For example, Macy’s announced late last year the closure of 66 stores as part of its recovery strategy.
After the closures, Kohl’s will have more than 1,150 stores. The closures come after the Wisconsin-based chain posted 11 consecutive quarters of declining sales.
Retail industry closures have soared in 2024, with more than 7,100 stores closing by the end of November, a 69% increase over the same period last year, according to research firm CoreSight.
Store employees were offered severance packages or the opportunity to transfer to neighboring stores.
Kohl’s said employees at affected stores will be offered severance pay or the opportunity to seek work at another location. The publicly traded retailer operates more than 1,150 stores across the United States.
List of the 27 stores Kohl’s will close
Alabama
- Spanish Fort – 21000 Town Center Ave.
Arkansas
- Little Rock West – 13909 Chenal Pkwy.
California
- Balboa (San Diego): 5505 Balboa Ave.
- Encinitas: 134 N El Camino Real
- Fremont: 43782 Christy St.
- Mountain View: 350 Showers Dr.
- Napa: 1116 1st St.
- Pleasanton: 4525 Rosewood Dr.
- Point West (Sacramento): 1896 Arden Way
- San Rafael: 5010 Northgate Dr.
- San Luis Obispo: 205 Madonna Rd.
- Westchester: 8739 S Sepulveda Blvd.
Colorado
- Arapahoe Crossing (Aurora): 6584 S Parker Rd.
Georgia
- Duluth: 2050 W Liddell Rd.
Idaho
- Boise – 400 N Milwaukee St.
Illinois
- Plainfield – 11860 S Route 59
- Spring Hill (West Dundee) – 3000 Spring Hill Ring Rd.
- Massachusetts
- Stoughton – 501 Technology Center Dr.
New Jersey
- East Windsor – 72 Princeton Hightstown Rd.
Ohio
- Blue Ash – 4150 Hunt Rd.
- Forest Park (Cincinnati) – 100 Cincinnati Mills Dr.
Oregon
- Portland Gateway – 10010 NE Halsey St.
Pennsylvania
- Pottstown – 351 W Schuylkill Rd.
Texas
- North Dallas – 18224 Preston Rd.
Utah
- Riverton – 13319 S 3600 W Ste 13
Virginia
- Herndon – 2100 Centreville Rd.
- Williamsburg – Grain Mill No. 100, PLZ