Major Retailer Announces Multiple Store Closures, Executive Shift

Store closing sale with going out of business signs.

Kohl’s announces the closure of 27 stores and a leadership change, signaling a major restructuring effort in the face of retail challenges.

At a Glance

Kohl’s to close 27 underperforming stores across 15 states by April 2025.
CEO Tom Kingsbury stepping down, to be replaced by former Michaels CEO Ashley Buchanan.
Closures and leadership change part of strategy to boost profitability amid declining sales.
E-commerce fulfillment center in San Bernardino, California, also set to close in May 2025.
Kohl’s expects a 7% to 8% decline in sales for 2024.

Kohl’s Announces Store Closures and CEO Transition

Kohl’s, a major American retail chain, has announced a significant restructuring plan that includes the closure of 27 underperforming stores across 15 states by April 2025. This move comes as the company grapples with 11 consecutive quarters of sales declines and aims to boost profitability in an increasingly challenging retail landscape.

The closures span multiple states, including California, Texas, and Pennsylvania, affecting locations that have been identified as underperforming. In addition to the store closures, Kohl’s will also shut down an e-commerce fulfillment center in San Bernardino, California, in May 2025, with fulfillment operations shifting to store locations.

Leadership Changes at the Helm

Concurrent with the store closure announcement, Kohl’s revealed a significant leadership change. Tom Kingsbury, the current CEO, will be stepping down from his position. Ashley Buchanan, the former CEO of Michaels, has been tapped to take over as the new chief executive of Kohl’s. This transition marks a new chapter for the company as it seeks to navigate the evolving retail landscape.

“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,” said Kingsbury.

Kingsbury will remain with the company as an adviser and board member until his retirement in May 2025, ensuring a smooth transition of leadership. This change comes at a critical time for Kohl’s as it implements its restructuring strategy and seeks to reposition itself in the market.

Impact on Employees and Future Outlook

While Kohl’s has not disclosed the exact number of employees affected by the closures, the company has stated that all impacted associates have been informed of the situation. Kohl’s is offering affected employees either a “competitive severance package” or the opportunity to apply for other open positions within the company.

Looking ahead, Kohl’s expects a 7% to 8% decline in sales for 2024, with full-year sales to be reported in February. Despite these challenges, the company remains confident in the strength of its profitable store base, which will consist of more than 1,120 locations after the closures. As part of its strategy to counteract declining sales in certain categories, Kohl’s has added Babies R Us shops in 200 stores, demonstrating its efforts to diversify and adapt to changing consumer preferences.

Broader Retail Industry Challenges

Kohl’s restructuring efforts come amid broader challenges facing U.S. department stores. The retail landscape has been dramatically altered by the rise of e-commerce and changing consumer shopping habits. Notably, Macy’s recently announced the closure of 66 stores early this year as part of a larger strategy to shutter 150 underperforming locations and upgrade remaining stores by fiscal 2026.

As Kohl’s navigates these challenging times, the company’s actions reflect a broader trend in the retail industry of streamlining operations, focusing on profitable locations, and adapting to the digital age. The success of these restructuring efforts will be closely watched by industry observers and investors alike, as Kohl’s seeks to regain its footing in a rapidly evolving retail landscape.