Beleaguered retailer Kohl's has joined Macy's in identifying underperforming stores it plans to close early this year. The two chains plan to shut down nearly 100 stores in total.
Menomonee Falls, Wisconsin-based Kohl's said it will close 27 stores in 15 states, as well as an e-commerce fulfillment center at 890 E. Mill St. in San Bernadino, California. The retail locations will close by April, while the 575,000-square-foot warehouse will be shuttered in May when Kohl's lease expires, the company said Thursday.
Kohl's, which has more than 1,150 locations, unveiled its 2025 real estate plans the same day that fellow department store chain Macy's released a list of 66 stores it plans to close in the first quarter. While New York-based Macy's had announced its plans to downsize its footprint nearly a year ago, Kohl's store closings hadn't been anticipated.
Both Kohl's and Macy's have been struggling while trying to survive in the troubled department store sector, challenged by online retailers like Amazon, and lower-priced competitors such as Walmart and off-price chains T.J. Maxx and Burlington Stores. The difficult environment led to a surge in retail bankruptcies, liquidations and store closings last year. Now a new wave of store closings has kicked off as companies pursue greater profitability.
Kohl's has had several years of rocky financial results, and turnover of its CEOs. Current CEO Tom Kingsbury will be succeeded this month by Ashley Buchanan, most recently the CEO of craft store chain Michaels. Kohl's announced Kingsbury's departure in November, a day before it reported that its net sales dropped 8.8% and comparable sales were down 9.3% in the third quarter.
Kingsbury had succeeded Michele Gass as CEO. She left to join Levi Strauss & Co. as president and CEO.
In a regulatory filing on Friday, Kohl's estimated it will rack up cumulative pre-tax charges of roughly $60 million to $80 million — including $30 million of noncash charges in real estate and other asset-related costs and impairments — as well as $30 million to $50 million of cash expenditures related to associated severance, benefits and other exit costs. The retailer expects substantially all of those charges to be incurred in the fourth quarter of 2024.
Kohl's said it "continues to believe in the health and strength of its profitable store base," but that locations that will be closed are underperforming.
The San Bernardino distribution facility has been in operation for Kohl's since 2010, and is one of 15 in the retailer's supply chain network.
"In recent years, Kohl's has increased efficiencies with new technology capabilities at newer [e-commerce fulfillment center] facilities and has expanded the company's ability to fulfill customer orders from store locations, allowing the company to maintain its ability to fulfill orders without the San Bernardino facility," the retailer said.
Kohl's has informed the affected employees about the closings, and offered them a severance package or the ability to apply to other open jobs at the chain.
The stores set to close are:
Alabama
- Spanish Fort, 21000 Town Center Ave.
Arkansas
- Little Rock West, 13909 Chenal Parkway
California
- Balboa (San Diego), 5505 Balboa Ave.
- Encinitas, 134 N. El Camino Real
- Fremont, 43782 Christy St.
- Mountain View, 350 Showers Drive
- Napa, 1116 1st St.
- Pleasanton, 4525 Rosewood Drive
- Point West (Sacramento), 1896 Arden Way
- San Rafael, 5010 Northgate Drive
- San Luis Obispo, 205 Madonna Road
- Westchester, 8739 S. Sepulveda Blvd.
Colorado
- Arapahoe Crossing (Aurora), 6584 S. Parker Road
Georgia
- Duluth, 2050 W. Liddell Road
Idaho
- Boise, 400 N. Milwaukee St.
Illinois
- Plainfield, 11860 S. Route 59
- Spring Hill (West Dundee), 3000 Spring Hill Ring Road
Massachusetts
- Stoughton, 501 Technology Center Drive
New Jersey
- East Windsor, 72 Princeton Hightstown Road
Ohio
- Blue Ash, 4150 Hunt Road
- Forest Park (Cincinnati), 100 Cincinnati Mills Drive
Oregon
- Portland Gateway, 10010 NE Halsey St.
Pennsylvania
- Pottstown, 351 W. Schuylkill Road
Texas
- North Dallas, 18224 Preston Road
Utah
- Riverton, 13319 S. 3600 W
Virginia
- Herndon, 2100 Centreville Road
- Williamsburg, 100 Gristmill Plaza