Kohl’s has announced plans to close 27 of its underperforming stores by April 2025 as part of the retailer’s ongoing transformation strategy. Headquartered in Menomonee Falls, Wisconsin, the company is “facing pressure” from declining sales.

In a press release dated January 9, the US department store stated that all employees at the affected locations have been notified and offered either a competitive severance package or the opportunity to apply for other available positions within the company.

The company emphasised its confidence in the overall health and profitability of its store network, noting that the closures are “specifically targeting locations that have not met performance expectations.”

Kohl’s is set to close its e-commerce fulfilment centre in San Bernardino, California, which has been operating since 2010. The facility is scheduled to shut down in May 2025. The company announced that it would fulfil customer orders directly from store locations, eliminating the need for the fulfilment centre.

“We take these decisions very seriously,” stated CEO Tom Kingsbury, who will step down from his role on January 15. The importance of making tough but necessary choices to ensure the long-term health and success of the business for both customers and employees, he added.

Ashley Buchanan, the former CEO of Michaels Companies, would succeed Kingsbury at Kohl’s on January 15. Kingsbury will continue to serve as an advisor and remain on the board until his retirement in May 2025.

In November 2024, the store projected a sales decline of 7% to 8% for the year. The retailer is expected to report its full-year sales figures in February.