Department stores and other retail chains in shopping malls for years have been battling huge competition from e-commerce, as well as discount and big-box retailers who offer one-stop shopping for consumer convenience.
Shopping mall anchors such as Macy’s (M) , JCPenney, Dillard’s, and Nordstrom have dealt with big-box variety retailers like Walmart (WMT) and Sam’s Club, Target (TGT) , and Costco (COST) , as well as strip mall discount retailers like TJMaxx, Marshalls and Ross that cut deep into their bottom lines.
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Amazon (AMZN) has been a big headache for malls over this time as well.
Related: Major department store to close dozens more stores in 2025
But even the big-box and discount retail competitors of shopping malls are not immune to economic distress and store closures.
In 2023, Walmart closed 24 stores for various reasons such as lower-than-expected performance, inventory shrink, and economic downturn. Then in 2024, the retail chain closed another 11 stores across the country.
Target closed nine stores in 2023 and another nine stores in 2024 because of shrinkage from theft.
Discount dollar store retailers have been hit even harder as Dollar Tree and Family Dollar closed hundreds of stores in 2024 with plans to close 1,000 over the next several years, KCRA-TV reported last year. Family Dollar was set to close 600 locations in 2024 and 370 more in future years, while its owner Dollar Tree would close 30 stores as leases expire.
Macy’s closing 66 stores in 2025
Huge mall retailer Macy’s in February 2024 said it would close about 150 locations by 2026 as part of its restructuring plan. With 350 locations remaining, the retailer plans to move away from malls in the future and build about 30 smaller concept stores over the next two years.
On Jan. 9, it revealed that it would close 66 underperforming stores nationwide in 2025.
Back in 2016, popular department store chain Kohl’s closed 16 stores across the country. In 2025, it plans to close even more stores nationwide.
Kohl’s closes 27 stores nationwide
Kohl’s (KSS) revealed on Jan. 9 that it will close 27 underperforming locations in 15 states by April 2025.
Related: Iconic retail chain removes favorite services, fires 400 workers
The Menomonee Falls, Wis.-based department store chain will also close its San Bernardino, Calif., E-commerce fulfillment center when its lease term ends in May 2025, the company said in a statement.
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Kohl’s has operated the San Bernardino facility since 2010, and it is one of 15 E-commerce fulfillment and distribution centers in Kohl’s supply chain network across the country.
In recent years, Kohl’s has increased efficiencies with new technology capabilities at newer E-commerce fulfillment centers and has expanded the company’s ability to fulfill customer orders from store locations, allowing the company to maintain its ability to fulfill orders without the San Bernardino facility.
“We always take these decisions very seriously,” Kohl’s CEO Tom Kingsbury said in a statement. “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, which operated more than 1,150 locations before the closures, said all employees have been informed and offered a competitive severance package or the ability to apply to other open roles at Kohl’s.
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