The past few years have been brutal for retailers, and many are succumbing to the pressure.
Much of the pain started during the pandemic when stay-at-home orders forced consumers to change how they shop. In 2020, many people got used to online purchases and haven’t looked back. But that’s been particularly harmful to department stores.
Department stores offer the benefit of a wide selection under one roof. Consumers often come in for one item and leave with more—a habit that hurts their wallets but benefits the retailers that need sales. But given the shrinking popularity of department stores, it’s getting harder to capitalize on consumer impulse purchases.
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Plus, as consumers spend their money more mindfully due to factors like inflation and sky-high interest rates, it’s been hard for retailers to stay competitive. Even stores with a loyal fan base have seen their bottom lines shrink as consumers prioritize essential expenses over non-essential retail purchases.
Not surprisingly, a number of major retailers have filed for bankruptcy in recent years and closed stores accordingly.
Last year, mall mainstay Express filed for bankruptcy, citing financial obstacles. And earlier this month, Forever 21 filed for bankruptcy and announced plans to liquidate its inventory.
Now, another major retailer is firming up store closure plans in an effort to regroup and maximize its financial resources.
Major retailer is closing dozens of stores this month.
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Kohl’s is in a tough spot
Kohl’s has long had a loyal following. Customers like the store’s changing inventory and rewards program.
In fact, the Kohl’s Cash program has long been beneficial to the department store giant as a means of luring customers back to the store. Kohl’s Cash can’t be used indefinitely. Rather, it has an expiration date, strategically putting pressure on consumers to make a return shopping trip.
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But despite the many things Kohl’s has going for it, it’s not immune to the general struggles retailers face today. During its last earnings call, the company announced that it anticipates a revenue decline for 2025.
In January, Kohl’s cut almost 10% of its corporate workforce. It also recently announced that it would stop accepting Amazon returns in certain locations.
Kohl’s established its partnership with Amazon to attract more customers. But while that arrangement may have benefitted Amazon, it’s clear that Kohl’s did not win.
Kohl’s firms up store closure plans
The fact that Kohl’s operates standalone stores, as opposed to being a mall anchor, is a mixed bag.
On the one hand, escaping the mall environment means ditching the competition that comes with it. And it’s a strategy other department stores have adopted in recent years.
Related: Kohl’s drops key partnership in some locations
On the other hand, standalone stores don’t benefit from incidental drop-ins the way mall retailers do. For Kohl’s to get people in the door, consumers must go there intentionally.
Like many other retailers, Kohl’s is moving forward with store closure plans as part of its long-term growth strategy. Shuttering underperforming locations allows Kohl’s to focus its resources on more profitable stores and take steps to up its e-commerce game.
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Kohl’s announced its 2025 store closure plans earlier in the year but has recently confirmed their official closure date as March 29. The following is a list of the stores that will be impacted:
Alabama: Spanish Fort – 21000 Town Center Ave.Arkansas: Little Rock West – 13909 Chenal Pkwy.California: Balboa (San Diego) – 5505 Balboa Ave.Encinitas – 134 N. El Camino RealFremont – 43782 Christy St.Mountain View – 350 Showers DriveNapa – 1116 First St.Pleasanton – 4525 Rosewood DrivePoint West (Sacramento) – 1896 Arden WaySan Rafael – 5010 Northgate DriveSan Luis Obispo – 205 Madonna RoadWestchester – 8739 S. Sepulveda Blvd.Colorado: Arapahoe Crossing (Aurora) – 6584 S. Parker RoadGeorgia: Duluth – 2050 W. Liddell RoadIdaho: Boise – 400 N. Milwaukee St.Illinois: Plainfield – 11860 S. Route 59Spring Hill (West Dundee) – 3000 Spring Hill Ring RoadMassachusetts: Stoughton – 501 Technology Center DriveNew Jersey: East Windsor – 72 Princeton Hightstown RoadOhio: Blue Ash – 4150 Hunt RoadForest Park (Cincinnati) – 100 Cincinnati Mills DriveOregon: Portland Gateway – 10010 NE Halsey St.Pennsylvania: Pottstown – 351 W. Schuylkill RoadTexas: North Dallas – 18224 Preston RoadUtah: Riverton – 13319 S. 3600 W. Ste 13Virginia: Herndon – 2100 Centreville RoadWilliamsburg – 100 Gristmill Plz
Kohl’s also plans to close an e-commerce fulfillment center in San Bernardino, California in May. The center has been in operation since 2010.
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