Kohl’s, a retail chain store, announced on January 9th that it will be closing 27 underperforming stores across the United States by April, including 10 in California. Additionally, the company’s e-commerce distribution center located in San Bernardino County, Southern California, will also shut down in May.
After the bankruptcy declarations of Sears and JCPenney last year, Wisconsin-based Kohl’s has faced challenges, aiming to avoid the fate of those two companies. Over the past year, Kohl’s stock prices have seen a continuous decline, dropping from around $26 per share in January of last year to below $14 per share in January of this year, compared to around $55 per share in 2021-2022.
As of May 4th last year, Kohl’s quarterly comparable sales had decreased by 4.4%, failing to meet expectations. According to GlobalData, its overall sales were down nearly 17% from 2019, and the stock price had plummeted by almost 65% compared to November 2019.
The company stated that the distribution center in San Bernardino County was one of its 15 e-commerce distribution centers in the U.S., in operation since 2010 with a lease expiring in May this year. However, in recent years, Kohl’s has enhanced efficiency using new facilities and technology, expanding its ability to fulfill customer orders from stores without relying on the San Bernardino County center.
Founded in 1962, Kohl’s currently has over 1,150 stores. The employees of the 27 closing stores have been notified and are offered competitive severance packages or the opportunity to apply for positions at other vacancies within the company. Kohl’s expressed gratitude to the employees and assured support during the transition period.
“We have taken these decisions very seriously,” said CEO Tom Kingsbury. “While continuing to advance our long-term growth strategies, we must take difficult but necessary actions to ensure a bright future for our customers and team.”
Kingsbury, who has been CEO since December 2022, will transition to a consultant role for the new CEO, Ashley Buchanan from Michaels Companies, until his retirement in May. Buchanan, who previously served as CEO and COO of Walmart’s e-commerce business, will take over Kingsbury’s position.
The 10 Kohl’s stores closing in California include locations in Los Angeles County, San Diego County, Alameda County, Santa Clara County, Napa County, Sacramento, Marin County, and San Luis Obispo County. The addresses are as follows:
Westchester – 8739 S Sepulveda Blvd.
Balboa (San Diego) – 5505 Balboa Ave.
Encinitas – 134 N El Camino Real
Fremont – 43782 Christy St.
Pleasanton – 4525 Rosewood Dr.
Mountain View – 350 Showers Drive
Napa – 1116 1st St.
Point West (Sacramento) – 1896 Arden Way
San Rafael – 5010 Northgate Drive
San Luis Obispo – 205 Madonna Road