Kohl’s will close 27 stores by April as the struggling department store works to improve sales
NEW YORK (AP) — Kohl’s said Friday it was closing 27 underperforming locations in 15 states by April — a fraction of its 1,150-store base — as a struggling department store The chain aims to increase profitability and improve weak sales.
The announcement comes as the Menomonee Falls, Wisconsin-based chain has posted 11 consecutive quarters of declining sales. Michaels CEO and retail veteran Ashley Buchanan is set to take over as CEO of Kohl’s next week.
Buchanan will take over from Tom Kingsbury, who will remain an advisor to the new CEO and retain his position on Kohl’s board until his planned retirement in May. Kingsbury was Kohl’s interim CEO in December 2022 and was named his permanent leader in February 2023.
Kohl’s declined to disclose the number of affected employees. It said the workers were notified and offered a “competitive severance package” or the opportunity to apply for other open positions at Kohl’s. Among the stores slated for closure were 10 in California.
“As we continue to build on our long-term growth strategy, it is important that we also take the difficult but necessary actions to support the health and future of our business for our customers and our teams,” Kingsbury said in a statement.
US department stores have had a challenging few years as consumers continue to look for deals online.
Macy’s revealed the locations on Thursday 66 shops that will close early this year, including one in a historic landmark building in Philadelphia. Most of those stores will close during the first fiscal quarter of this year, Macy’s said.
The announcement is part of a strategy announced in February 2024, which calls for a hard shutdown 150 underperforming stores while upgrading its remaining 350 stores through fiscal 2026. The closings come as Macy’s looks to improve its sales as shoppers pull back on discretionary items amid still-high inflation.
Macy’s reported in November decline in profits and sales in the third fiscal quarter. It raised sales expectations for the current fiscal year, but lowered profit projections.
The closing Macy’s stores account for 25% of the company’s total square footage but less than 10% of its sales, the company said.
