Kohl’s department store is closing 27 locations in 15 states by April, including one in New Jersey, as it and other retailers contend with sagging sales.
While that is just a fraction of the chain’s 1,150 locations, or less than 3% of its overall number, the move is indicative of a larger problem and accompanies a slew of retail ruptures over the past year, experts noted. In fact, the announcement came the same day that Macy’s disclosed the locations of 66 stores it had said it would be closing the first quarter of this year.
“While Kohl’s continues to believe in the health and strength of its profitable store base, these specific locations were underperforming stores,” the chain said in a statement Friday. “All associates have been informed, and offered a competitive severance package or the ability to apply to other open roles at Kohl’s.”
The announcement comes as Kohl’s is on the cusp of changing leadership, with Michaels CEO Ashley Buchanan prepares to take over as Kohl’s CEO on Wednesday. The move follows 11 consecutive quarters of sales declines.
“We always take these decisions very seriously,” said Tom Kingsbury, Kohl’s outgoing CEO, in a statement. “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.”
Kingsbury will continue advising Kohl’s and retain his board position until his May retirement. He officially took the reins in February 2023 after serving as interim CEO starting three months earlier.
Like other retailers, Kohl’s has been beset by consumer spending woes as middle-class buyers flocked last year to lower-priced options, held back on big-ticket items or shopped online. Kohl’s joins a host of retailers planning to shutter stores in 2025. Some have gone so far as to seek bankruptcy protection, or close down altogether.
Macy’s, which has already announced 66 closures, will shutter nine stores in New York State and one in New Jersey. As with the Kohl’s closures, the stores were deemed underperforming, the company said.