US retail chain department store “Kohl’s” recently announced the closure of 27 underperforming stores in 15 states as part of their efforts to enhance profitability.
The company stated that these stores are set to be closed by April. With over 1,150 chain stores in total, the planned closures represent only a small fraction of Kohl’s locations.
Kohl’s expressed that while they continue to have faith in the health and strength of their profitable stores, the specific locations of these 27 stores have shown poor performance.
This decision was one of the final actions made by outgoing CEO Tom Kingsbury.
Kingsbury emphasized the seriousness with which these decisions were made regarding the closures of stores and distribution centers, stating, “We have consistently taken these decisions very seriously. It is important that as we continue to drive forward our long-term growth strategy, we also take the difficult but necessary actions to support the health and future of our business.”
Like many department stores in recent years, Kohl’s has faced challenges and fluctuations amid shifts in consumer behavior. The retailer recently projected a larger-than-expected decline in sales. Kohl’s stock price has dropped nearly 40% over the past six months.
The states where the 27 Kohl’s stores slated for closure are located include Alabama, Arkansas, California, Colorado, Georgia, Idaho, Illinois, Massachusetts, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia.
Among these states, California has the highest number of store closures, with a total of 10 locations being affected.