Kohl’s announces significant store closures and leadership changes in response to industry challenges.
At a Glance
- Kohl’s closing 27 stores and one distribution center by spring.
- Closures impact 15 states, with San Bernardino center closing by May.
- CEO Tom Kingsbury steps down; Ashley Buchanan set to replace him.
- Macy’s also closing 150 stores amid retail pressures.
Strategic Store Closures
Kohl’s plans to shutter 27 underperforming stores along with a distribution center to address ongoing retail challenges. Affected areas span across states like California, Ohio, and Texas. These closures are part of a broader strategy to navigate the difficult economic landscape retailers face today. The company will finalize these changes by spring, sometime before May. This move demonstrates Kohl’s attempt to proactively manage resources by cutting losses in unprofitable locations.
This action echoes Macy’s recent decision to close a significant number of its stores. Macy’s plan includes shutting down 150 stores, adding pressure across the retail industry. With 64 Macy’s locations already closed by the end of 2024, it underscores the seriousness of the situation facing traditional department stores. Kohl’s closures, including its E-commerce Distribution Center in San Bernardino, reflect similar measures.
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
Leadership Transition
CEO Tom Kingsbury has announced he will step down, with Ashley Buchanan, formerly from Michaels, poised to take over. This leadership change could signal a new direction for the company as it adapts to evolving market demands. Buchanan’s leadership will likely bring fresh strategies, which Kohl’s may utilize to fortify its position amidst continued economic headwinds. These adjustments are crucial for survival in the highly competitive retail sector.
“We always take these decisions very seriously” – CEO Tom Kingsbury
Kohl’s operates over 1,150 locations across the United States, with Hawaii being the only exclusion. Despite the closures, Kohl’s remains confident in the profitability of its remaining stores, signaling stability and customer loyalty in those regions. While these closures reflect a difficult decision, Kohl’s aims to sustain its long-term growth trajectory, viewing these store closures as a necessary step towards financial health.
Kohl's Corp. will close 27 stores nationwide by April.
The store chain said the affected locations are underperforming.The news comes less than a week before a leadership transition, when Ashley Buchanan succeeds Tom Kingsbury as the Menomonee Falls-based company's CEO.
States… pic.twitter.com/xJNkRT5oQh
— TheChatMan ⚔️🛡 (@The_ChatMan) January 10, 2025
Employee Impact and Support
Kohl’s emphasizes their commitment to employees affected by these closures. All associates have been informed, with offers of competitive severance packages and opportunities for redeployment within the company. This initiative underscores Kohl’s dedication to its workforce, acknowledging the disruptions caused by their strategic response to market pressures.
Despite the challenges, Kohl’s execution of these plans reflects their ongoing commitment to strategically evolve in a volatile market. This systematic approach to aligning operations with industry demands situates Kohl’s to face future economic difficulties while showing resilience and adaptability.
Sources
1. Kohl’s to Close 27 ‘Underperforming’ Stores by April, CEO Stepping Down
2. Kohl’s to close 27 ‘underperforming’ stores by April. Here’s the list
