Kohl's closes 27 underperforming stores across 15 states

In March 2025, Kohl's announced the closure of 27 stores as part of a strategic restructuring to manage its real estate effectively. The decision was made after the company experienced a 7.2 percent decrease in net sales in 2024, totaling $15.4 billion. This reduction in revenue has prompted the company's leadership to reassess its operational footprint, identify underperforming locations, and implement necessary changes for future stability. The closures are taking place across 15 states, with the last day of operations set for March 29, 2025. Kohl's CEO Ashley Buchanan, appointed in mid-January, emphasized the importance of taking these challenging yet necessary steps to ensure the company's long-term growth and success. The decision to close stores follows a pattern of difficult choices companies are often faced with in response to financial challenges. In addition to the retail closures, Kohl's plans to shut down its San Bernardino E-commerce Fulfillment Center in California in May 2025. This move is aligned with the company's broader objective to streamline operations and enhance profitability. As consumers continue to shift their shopping habits, notably intensifying online purchases, Kohl's decision illustrates a commitment to adapting to market demands while also focusing on its core physical assets. The strategic changes come amid increasing competition and changing retail landscapes. As Ashley Buchanan stated, key areas of focus have been identified to reposition Kohl's for future success. The store closures are part of a larger effort to realign the business with its objectives and customer expectations as it navigates through a more digitized shopping environment.