Kohl’s has announced plans to close 27 underperforming locations by April 2025.
In addition, the US department store retail chain, will shutter an ecommerce fulfillment center in San Bernardino, California, by May 2025.
The company stated that the closure of the San Bernardino center is due to new technological advances at other locations, removing the need for the facility.
Kohl’s has struggled to maintain profitability amid the highly competitive market and shifting consumer trends.
The company saw its net sales decrease by 8.8% and comparable sales decrease by 9.3% in Q3 of the 2024 fiscal year.
In response to the declining sales, Tom Kingsbury, Kohl’s former CEO, said: “We are not satisfied with our performance in 2024 and are taking aggressive action to reverse the sales declines.
“We must execute at a higher level and ensure we are putting the customer first in everything we do.
“We are approaching our financial outlook for the year more conservatively given the third quarter underperformance and our expectation for a highly competitive holiday season.”
Following the disappointing financial outcome of the company in 2024, Kohl’s changed leadership, with Kingsbury stepping down as CEO on 15 January 2025.
Following his departure Ashley Buchanan, former CEO of Michaels, was appointed as the new CEO.
Moving forward, the retail chain plans to cut several jobs and offer current employees severance packages and application opportunities to other branches.
Kingsbury added: “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.”
Despite the closure of 27 locations, the retailer said it is confident in the sustainability and durability of its 1,150 locations.
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