Menomonee Falls, WI — January 10, 2025: Kohl’s Corporation has announced plans to shutter 27 of its underperforming stores by April 2025, as part of a strategic transformation to address declining sales and strengthen its overall business model. The closures include a long-standing e-commerce fulfillment center in San Bernardino, California, set to cease operations in May 2025.
The retailer, headquartered in Menomonee Falls, Wisconsin, confirmed in a press release on January 9 that employees at the affected locations have been notified. Kohl’s is offering competitive severance packages and opportunities to apply for other roles within the company to support those impacted by the decision.
“While Kohl’s continues to believe in the health and strength of its profitable store base, these specific locations were underperforming,” the company stated. “This decision aligns with our commitment to ensure a sustainable and profitable future for the business.”
The decision to close the San Bernardino fulfillment center marks a pivotal shift in Kohl’s operations. The company emphasized its ability to fulfill online orders directly from retail locations, reducing the need for standalone fulfillment centers. The San Bernardino facility has been operational since 2010.
Leadership Transition to Shape Kohl’s Future
The announcement comes as Kohl’s prepares for a leadership change. CEO Tom Kingsbury is set to step down on January 15, 2025, making way for Ashley Buchanan, the former CEO of Michaels Companies. Kingsbury will remain with the company as an advisor and board member until his planned retirement in May 2025.
“We always take these decisions very seriously,” Kingsbury said. “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.”
Buchanan’s appointment is seen as a strategic move to steer Kohl’s through its transformation phase and focus on modernizing operations to meet evolving consumer demands.
Financial Outlook
Kohl’s has faced significant challenges in recent years, reporting a projected decline in 2024 sales of 7% to 8% as of November 2024. The retailer is expected to disclose its full-year financial results in February 2025. The closures and operational changes are part of a broader effort to realign the company’s resources and improve profitability.
