Kohl’s Closing 27 Stores by April 2025 Amidst Diminishing Profits

Kohl’s is closing what it is calling “underperforming” stores in 27 locations by April 2025, citing diminishing profits as its reason.

According to a press release dropped by the store on Jan. 9, these 27 stores only represent a small fraction of the total number of stores nationwide, and that the company “continues to believe in the health and strength of its profitable store base.”

Per CNN, it’s one of the final choices made by departing CEO Tom Kingsbury. He will stand down on Wednesday and be succeeded by Ashley Buchanan, the CEO of Michaels, an arts and crafts company, the following week. Until his retirement in May, Kingsbury will continue to serve on the company’s board and as an advisor to Buchanan.

“We always take these decisions very seriously,” Kingsbury said in the release. “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.”

Kohl’s stock has dropped by almost 40% in the last six months. The corporation was involved in a contentious dispute with activist investors in 2022 who attempted to pressure Kohl’s to sell its real estate, spin off its internet division, or go private. Additionally, the retailer said it was considering a sale in 2022.

Kohl’s is the Latest Retailer to Close Locations

Kohl’s is the latest retailer to announce closing additional locations. Macy’s, too, announced that it was closing 65 more stores by the end of the fiscal year, marking a greater number of closures than originally planned by the retail titan.

According to the company’s third-quarter results report, Macy’s now plans to close 65 stores by the end of the fiscal year, after first announcing 50 closures in February, as reported by CBS News.

Tony Spring, the CEO of Macy’s, accepted the updated figure during an earnings call and stated that most closures will occur after the holidays.

“We now expect to close roughly 65 locations this year, in line with our typical cadence,” he said.

This decision is part of a broader campaign called “A Bold New Chapter,” which Macy’s unveiled earlier this year. By 2026, the business intends to close 150 “unproductive” locations, or around 30% of its total locations, and invest in 350 “go-forward” stores. Macy’s plans to close 66 stores in 2025.