2025-01-11 00:01:59 :
NEW YORK (AP) — Kohl’s said Friday it will close 27 underperforming stores in 15 states by April, a fraction of its 1,150-store total, as the struggling company Department stores aim to boost profitability and improve weak sales.
The news comes as the Menomonee Falls, Wisconsin-based chain has posted 11 consecutive quarters of declining sales and faces new leadership. Michaels CEO and retail veteran Ashley Buchanan will take over the chain’s top job effective Wednesday, succeeding Tom Kingsbury, who will remain as the new chief executive will remain on the Kohl’s board of directors until his retirement in May of this year.
Kingsbury served as Kohl’s interim CEO in December 2022 and was named permanent leader in February 2023.
Cole declined to disclose the number of employees affected. The company said employees were notified and offered “competitive severance packages” or the opportunity to apply for other open positions at Kohl’s. The list considered closed includes 10 in California.
“As we continue to develop 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 teams,” Kingsbury said in a statement.
On Thursday, Macy’s announced the locations of 66 stores it will close early this year, including one in a historic Philadelphia landmark. Macy’s said most of those stores will close during the company’s first fiscal quarter of this year.
The announcement is part of a strategy announced in February 2024 that calls for closing approximately 150 unproductive stores while upgrading the remaining 350 stores by fiscal 2026. The closures come as Macy’s looks to improve sales as consumers cut back on non-essential purchases during the pandemic. Inflation remains high.
In November, Macy’s reported lower fiscal third-quarter profits and sales. It raised its sales forecast for the current fiscal year but lowered its profit forecast.
The company said the Macy’s stores that will close account for 25% of the total space but less than 10% of its sales.
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