Department store chain Kohl’s has announced the closure of 27 “underperforming” stores and a distribution center by this spring, just a month after competing chain Macy’s said they are shuttering 150 locations.
Kohl’s, headquartered in Menomonee Falls, Wisconsin, said in a January 9 press release that the locations scheduled to be closed are in Alabama, Arkansas, California, Colorado, Georgia, Idaho, Illinois, Massachusetts, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia.
The selected stores in those states will be shut down by April, and the company’s San Bernardino, California, E-commerce Distribution Center will be closed by May, the release stated.
“All associates have been informed, and offered a competitive severance package or the ability to apply to other open roles at Kohl’s,” company officials said. “Kohl’s thanks our associates for their work and is working to support our associates during this transition.”
CEO Tom Kingsbury emphasized that the decisions were “difficult but necessary.”
“We always take these decisions very seriously,” he said. “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.”
Kohl’s has over 1,150 locations in the U.S., with a presence in every state but Hawaii.
Company representatives added in the news release that they still “believe in the health and strength of its profitable store base” outside of those specific “underperforming stores.”
Kingsbury’s position is also subject to change, as he is set to step down as CEO on Tuesday, USA Today reported.
Ashley Buchanan, the CEO of craft retailing giant Michaels, will leave his company to take over the CEO position at Kohl’s.
“I am incredibly proud of what we have accomplished since I joined Michaels five years ago,” Buchanan said in a November press release from Michaels. “The strategic priorities the team put in place have positioned Michaels for success today while ensuring future innovation and growth. Over the next two months, I look forward to working closely with the Michaels Leadership Team and the Board of Directors to continue to advance our strategy and ensure a smooth transition.”
The news of Kohl’s location closures comes soon after Macy’s shuttered 64 locations by the end of 2024, as part of their plan to close a total of 150 stores over the next three years, Breitbart News reported.
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