In a move reflecting the changing retail landscape, Kohl’s has confirmed plans to close 27 of their underperforming stores by April this year. According to a notice on Kohl's website and a report by SILive, the affected stores are spread across various states. This downsizing is part of the company's larger effort to optimize its operations amidst a backdrop of challenging sales figures.
Industry observers have been tracking the declining sales trends at Kohl’s, which the company has acknowledged. Despite initiatives aimed at revitalization, the decision to close select locations indicates ongoing difficulties. With the announcement came the revelation of an e-commerce fulfillment center's closure in San Bernardino, California. Having opened its doors in 2010 and served for over a decade, the facility is scheduled to close as the lease expires in May, a strategic response to increased efficiencies in other parts of its network and shifting sales fulfillment practices, typically from store locations themselves.
The announcement of these closures has been accompanied by an assurance from the company to provide adequate support for the employees at the impacted stores. "We always take these decisions very seriously," Kohl's chief executive officer, Tom Kingsbury, told USA Today. "As we continue to build on our long-term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our business for our customers and our teams." Employees of the closing stores have been informed and offered either a competitive severance package or the opportunity to apply for other open roles within the company.
With 27 stores shutting down, Kohl’s continues to rationalize its retail footprint. The adjustment leaves the company with over 1,120 locations, navigating a landscape where traditional brick-and-mortar retail is under assault from e-commerce and changing consumer behaviors. According to a press release obtained by USA Today, Kohl's forecasts for 2024 predict a 7% to 8% decline in sales. A detailed report on the retailer’s full-year sales will be released in February.
In leadership news, Tom Kingsbury, who has been serving as the CEO, will step down this coming Wednesday. Ashley Buchanan, previously helming The Michaels Companies, is set to take over the reins at Kohl’s. Apparently committed to smoothing the transition, Kingsbury will stay on as an advisor and serve on the company's board through his retirement in May 2025, indicating that Kohl's is maneuvering through these challenging times with a focus on experienced stewardship.
