Kohls Announces Closure of 27 Stores by April to Boost Sales Performance
New York (Samachar Pranali) – Kohl’s announced on Friday that it will close 27 underperforming stores across 15 states by April, accounting for a small fraction of its 1,150-store network. This move is part of the struggling department store chain’s efforts to boost profitability and improve declining sales.
The announcement comes as the Menomonee Falls, Wisconsin-based retailer has reported 11 consecutive quarters of declining sales. Michaels’ CEO and retail veteran Ashley Buchanan is set to take over as Kohl’s Chief Executive next week.
Buchanan will succeed Tom Kingsbury, who will remain as an advisor to the new CEO and retain his position on Kohl’s board until his planned retirement in May. Kingsbury initially served as interim CEO in December 2022 before being named permanent CEO in February 2023.
Kohl’s declined to disclose the number of affected employees but stated that workers have been notified and will receive “competitive severance packages” or have the opportunity to apply for other open roles within the company. Among the stores set to close, 10 are located in California.
“As we continue to execute our long-term growth strategy, it’s crucial that we take difficult but necessary actions to support the health and future of our business for our customers and teams,” Kingsbury said in a statement.
The past few years have been challenging for U.S. department stores as consumers increasingly turn to online shopping for deals.
On Thursday, Macy’s revealed plans to close 66 stores early this year, including a historic location in Philadelphia. Most of these closures are expected to occur during the company’s first fiscal quarter.
This move is part of a strategy announced in February 2024, which involves shutting down approximately 150 underperforming stores by fiscal year 2026 while upgrading the remaining 350 locations. Macy’s aims to improve sales as shoppers cut back on discretionary spending amid persistently high inflation.
In November, Macy’s reported declines in both profit and sales for its financial third quarter. While it raised its full-year sales forecast, it lowered its profit outlook.
The company stated that the stores being closed account for 25% of its total square footage but less than 10% of its overall sales.
Kohls Announces Closure of 27 Stores by April to Boost Sales Performance
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