Kohl's has announced plans to close 27 stores across more than a dozen U.S. states, a move the company says is aimed at strengthening its overall financial performance and positioning the brand for long-term stability. The closures are expected to be completed by April and represent a relatively small fraction of the retailer’s roughly 1,150 locations nationwide.
Company leaders were quick to emphasize that the vast majority of Kohl’s stores remain profitable and continue to operate successfully. The decision, they explained, is not a large-scale retreat but a targeted adjustment. The selected locations were identified as underperforming, making them part of a broader effort to streamline operations and concentrate resources in markets showing stronger sales and growth potential.
Outgoing CEO Tom Kingsbury described the announcement as a difficult but necessary step. In a statement addressing employees and investors, he acknowledged the impact store closures have on associates and local communities, while stressing that the move is intended to protect the company’s long-term health. Kingsbury is set to step down from his leadership role soon, with Ashley Buchanan preparing to assume the position of chief executive officer. Kingsbury will remain involved for a transitional period as an advisor to help ensure continuity in strategy and leadership.
The closures come at a time when many traditional department store chains are navigating significant industry headwinds. Consumer shopping habits have evolved rapidly in recent years, with more customers shifting toward online platforms and digital marketplaces. As e-commerce continues to expand, brick-and-mortar retailers face mounting pressure to adapt their store footprints, reduce costs, and rethink how physical locations fit into a modern retail strategy.
Kohl’s has also reported softer sales performance, including projections of a weaker-than-anticipated holiday shopping season. These challenges have contributed to volatility in the company’s stock price and increased scrutiny from investors seeking signs of stabilization and growth. By closing underperforming stores, Kohl’s aims to reduce operational expenses, improve efficiency, and redirect investment toward higher-performing regions and digital initiatives.
The announcement aligns with similar decisions made by other national retailers responding to economic pressures, inflation concerns, and cautious consumer spending. Industry-wide, companies are reevaluating store portfolios, renegotiating leases, and accelerating efforts to modernize both in-store and online experiences.
Despite the closures, Kohl’s leadership maintains that physical stores remain central to the company’s identity and strategy. The retailer has indicated plans to continue updating store layouts, enhancing merchandise assortments, and improving customer service initiatives in its remaining locations. The broader objective, executives say, is to create a more agile and financially resilient organization—one capable of competing effectively in a rapidly shifting retail landscape.
While the closure of any store brings uncertainty for employees and shoppers in affected communities, Kohl’s leadership frames the move as a recalibration rather than a retreat—an attempt to focus on profitable operations and ensure the brand’s sustainability in the years ahead.