Kohl’s plans to close 27 underperforming stores across multiple states by April to improve profitability. The closures affect a small portion of its 1,150+ locations, and the company says its overall business remains strong.
The move comes as CEO Tom Kingsbury prepares to step down, with Ashley Buchanan (currently leading Michaels) set to take over. Kingsbury will stay on briefly as an advisor.
Founded in 1962, Kohl’s is one of the largest U.S. department store chains, offering clothing, home goods, and brands like Nike and Levi’s, along with partnerships like Sephora shop-in-stores.
Like many retailers, Kohl’s faces challenges from changing shopping habits and e-commerce competition. Sales have declined, and its stock has dropped about 40% in six months. Despite past pressure from investors, the company is focusing on internal improvements rather than selling.
Overall, the closures are part of a broader strategy to streamline operations and adapt to a changing retail market.