Kohl’s Corporation has confirmed plans to close 27 underperforming stores across the United States by April 2025, as part of the company’s ongoing efforts to improve profitability.
The closures will include a location in East Windsor, New Jersey, at Princeton Hightstown Road, which is the only store in the tri-state area slated for closure.
Kohl’s currently operates 38 stores in New Jersey.
The announcement comes amid a challenging retail environment as the Wisconsin-based chain has posted 11 consecutive quarters of declining sales and faces new leadership.
The decision follows Kohl’s strategic plan to optimize its store network and focus on locations that generate stronger financial results.
The closures, which will shutter 27 of Kohl’s more than 1,150 store locations nationwide, will primarily involve locations that have not met the company’s performance expectations.
Kohl’s said that employees at these closing stores have been informed and will be offered a competitive severance package or the opportunity to apply for other jobs within the company.
“We always take these decisions very seriously,” said Tom Kingsbury, CEO of Kohl’s. “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.”
In addition to the store closures, Kohl’s also announced that it would close its San Bernardino E-commerce Fulfillment Center by May 2025, when the facility lease expires.
The company cited improvements in its technology and distribution systems, including an expanded capacity to fulfill orders from its stores, as reasons for the decision.
While the company has experienced challenges in recent years, including declining sales projections for 2024, Kohl’s says it remains focused on maintaining the strength of its profitable stores and improving operational efficiencies. The full impact of these decisions will likely be seen when the company reports its 2024 sales in February.
Kohl’s is not the only retailer making significant changes to its store network. Other major retailers such as Macy’s, Bed Bath & Beyond, and Foot Locker have also announced plans to close underperforming locations in response to changing consumer habits and increased competition from online retailers.
GameStop has closed at least 700 stores since 2020 due to increased competition from online retailers and streaming gaming options
Other retailers that have shut down or are in the process of closing stores include Family Dollar, CVS Health, Big Lots, Conn’s, rue21, 7-Eleven, Rite Aid, Godiva Chocolatier, and 99 Cents Only Stores.
As the company moves forward, Kohl’s is expected to focus on its more profitable locations while continuing to adapt to shifts in the retail landscape.