Kohl’s, the department store chain, has announced that it will be closing several of its underperforming locations, as well as its e-commerce distribution center in San Bernardino, California, which has been in operation since 2010.
Employees impacted by these closures have been notified and offered a severance package, as well as the opportunity to apply for other available positions at Kohl’s, according to an official company statement.
Why is Kohl’s closing its stores?
The decision to close these locations is due to underwhelming financial performance.
The company has faced challenges in regaining its momentum. Late last year, its CEO, Tom Kingsbury, admitted that several of the company’s recent strategies had not been successful, and that some of them would be reversed.
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How many Kohl’s stores will close in 2025?
According to the company, 27 underperforming stores will close by April.
Which Kohl’s stores will close?
The stores that will close in 2025 in Illinois are the Plainfield location, located at 11860 S Route 59, and the Spring Hill (West Dundee) location at 3000 Spring Hill Ring Rd. In addition to these, the following stores are also expected to close:
- California
- Alabama
- Arkansas
- Colorado
- Georgia
- Idaho
- Massachusetts
- New Jersey
- Ohio
- Oregon
- Pennsylvania
- Texas
- Utah
- Virginia
What is Kohl’s?
Kohl’s Corporation is a retailer with both an online and physical presence. The company operates around 1,100 stores in 49 U.S. states, along with its online store, Kohls.com, and its mobile app. In its stores and on the website, Kohl’s offers a wide range of products, including clothing, footwear, accessories, beauty products, and home goods, from both private and national brands.
How did Kohl’s start?
The company was founded on September 12, 1962, by Maxwell Kohl in Brookfield, Wisconsin. Before opening the department store, Maxwell already owned 48 grocery stores in Wisconsin.
Although Kohl’s was originally envisioned as a luxury store, the company shifted its market focus over time under new management.
The Kohl family maintained ownership of the business until 1979, when Maxwell’s son, Herb, decided to leave the company to become a U.S. senator.
What does Kohl’s sell?
The department store sells a variety of items, including:
- Clothing
- Toys
- Outdoor gear
- Bed and bath care
- Furniture
- Pet supplies
- Jewelry and accessories
- Shoes
- Food and beverages
- Luggage and travel accessories
It has also partnered with the beauty retailer Sephora and has several in-store Sephora locations.
What are Kohl’s brands?
The company’s private-label brands account for nearly half of the company’s $19 billion in annual sales. These include its own clothing lines such as American Beauty, Apt. 9, Croft & Barrow, Jumping Beans, So, Tek Gear, and Urban Pipeline.
Who owns Kohl’s?
Ownership of the company is distributed among both retail and institutional investors. In 2022, the company was acquired by The Copps Corporation, expanding its shareholder base.
Over 50% of the company is owned by investors such as BlackRock Inc., Vanguard Group Inc., Macellum Advisors, among others. Around 5.3% of Kohl’s shares are held by hedge funds. Currently, the company is valued at $2.22 billion.
