Kohl’s announced on Friday it will shut down 27 underperforming retail stores across 15 states by April. This decision affects only a small portion of their 1,150 stores as the chain, based in Menomonee Falls, Wisconsin, struggles with 11 consecutive quarters of declining sales. 

Ashley Buchanan, a retail veteran and CEO of Michaels, is due to assume the role of CEO at Kohl’s next week. He will succeed Tom Kingsbury, who will continue as an advisor to Buchanan and remain on Kohl’s board until his planned retirement in May. Kingsbury had previously served as interim CEO in December 2022 before being appointed permanently in February 2023.

Kohl’s has not revealed how many employees will be impacted by these closures but stated that all affected workers have been informed and offered either a competitive severance package or opportunities to apply for other positions within the company. Among the stores slated for closure, 10 are in California.

In a statement, Kingsbury emphasized the necessity of these actions to ensure the long-term health and growth of the business for both customers and staff.

The broader context shows that U.S. department stores, including Kohl’s, have been grappling with challenges as shoppers increasingly turn to online platforms for better deals.

Macy’s to Close More Stores in Florida, 66 Nationwide

Macy’s announced on Thursday plans to close 66 stores early this year, part of a broader strategy to shutter about 150 less productive locations by fiscal 2026 while investing in upgrades for the remaining 350 stores. This includes the closure of a store in a historic landmark building in Philadelphia, with most closures occurring during Macy’s first fiscal quarter.

This move follows a February 2024 announcement where Macy’s aimed to refocus its business strategy amidst a backdrop of declining sales due to high inflation affecting consumer spending on discretionary items. In its fiscal third quarter reported in November, Macy’s saw both profit and sales decrease, leading to an adjustment in profit forecasts despite raising sales expectations for the year.

The stores targeted for closure represent 25% of Macy’s total square footage but contribute less than 10% to its overall sales.

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(Image credit: Hudson Valley Post)