Kohl’s Announces Closure of 27 Stores Nationwide Amid Retail Industry Challenges

The retail landscape continues to evolve as Kohl’s announced the closure of 27 “underperforming” stores across 15 states by April 2025, representing less than 3% of its total 1,150-store network. The Wisconsin-based retailer’s decision comes as part of its ongoing transformation efforts to improve profitability and address declining sales.

California bears the brunt of these closures, with 10 stores scheduled to shut down, including five locations in the San Francisco Bay Area. The company is also closing its e-commerce fulfillment center in San Bernardino, California, citing increased efficiencies at newer facilities and enhanced ability to process online orders directly from store locations.

The announcement coincides with a leadership transition at Kohl’s. Current CEO Tom Kingsbury will step down on January 15, with Ashley Buchanan, former CEO of Michaels Companies, taking the helm. Kingsbury will continue to serve as an advisor and board member until his retirement in May 2025.

The retailer has already communicated with affected employees, offering them either competitive severance packages or opportunities to apply for other positions within the company. This move follows a challenging period for Kohl’s, which projected a 7-8% decline in sales for 2024 during its November forecast.

The retail sector as a whole has faced significant headwinds, with U.S. retailers announcing more than 7,100 store closures in November 2024, marking a 69% increase from the previous year. According to research firm CoreSight, 45 retailers filed for bankruptcy protection through November 2024, compared to 25 throughout 2023.

The broader retail landscape continues to evolve as consumer shopping habits shift increasingly toward online platforms. Research by Green Street Advisors suggests that nearly 25% of the largest shopping malls in the U.S. could close by 2027. Major retailers like Macy’s have also announced significant closures, with 66 locations scheduled to shut down in 2025.

Despite these challenges, Kohl’s will maintain a substantial presence with over 1,120 locations nationwide following the closures. The company’s strategic decision to eliminate underperforming stores while maintaining its core network demonstrates its commitment to long-term sustainability and growth in an increasingly competitive retail environment.