Kohl’s has announced plans to close 27 underperforming locations across 15 states by April, part of a strategy aimed at enhancing profitability and addressing significant sales declines experienced by the retailer. This move comes in the wake of Kohl's consistent struggles, with the Menomonee Falls, Wisconsin-based chain posting 11 consecutive quarters of sales declines (AP News). As the store count shrinks from approximately 1,150, the company's new CEO, Ashley Buchanan, currently the chief executive at Michaels, will be stepping in to lead the struggling department store.

Former CEO Tom Kingsbury, who guided the company as interim CEO since December 2022 before being appointed permanently in February 2023, will remain available to assist Buchanan until his retirement in May (SFGate). While Kohl's has not disclosed the exact number of employees affected by the store closures, the company has offered workers a “competitive severance package” along with opportunities to apply for other positions within the organization.

The closures include 10 stores in California, and are part of a broader effort to stabilize the business as it faces fierce competition from online retail. Kingsbury stated, “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.”

Compounding these challenges, Macy’s has also initiated store closures, announcing plans to shut down 66 locations, which represent a small fraction of its overall sales but account for approximately 25% of its square footage. This move follows reports of declining profits and sales at Macy's amid tightened consumer spending on non-essential items (AP News).

The retail landscape is becoming increasingly challenging as consumers gravitate towards online shopping platforms, forcing longstanding department stores to make significant operational adjustments. Retail experts suggest that in order to thrive, these companies will need to prioritize e-commerce initiatives alongside their physical store strategies.