Once a staple of suburban shopping, Kohl’s is the latest casualty in the struggle for traditional retail survival. Facing declining sales and leadership upheaval, the Wisconsin-based retailer has announced it will permanently close 27 underperforming stores across 14 states, with California bearing the brunt of the closures.
The announcement comes as Kohl’s battles mounting financial struggles, marking its 11th consecutive quarter of declining sales. The closures, scheduled to be completed by April, are part of what the company is calling “difficult but necessary actions” to stabilize its future.
“We always take these decisions very seriously,” said outgoing CEO Tom Kingsbury 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.”
The closures affect hundreds of employees, who have been offered severance packages or the option to apply for roles at other Kohl’s locations. However, the broader picture paints a grim reality for brick-and-mortar retail in America.
Kohl’s operates more than 1,100 stores nationwide, but its business model has been battered by shifting consumer habits, rising e-commerce dominance, and inflation-driven spending cutbacks. The retailer reported a staggering 9.3% same-store sales decline in the third quarter and has repeatedly downgraded its annual sales forecasts.
Customer visits to Kohl’s stores have dropped precipitously, falling 6.2% in the third quarter alone, reflecting a broader trend of dwindling foot traffic across department stores.
Adding to the uncertainty is the leadership transition: Kingsbury, who served less than two years as CEO, will be replaced by Ashley Buchanan, a former Walmart executive. Buchanan inherits a challenging landscape as the chain attempts to reverse its fortunes.
Kohl’s struggles mirror those of its retail counterparts, including Macy’s, J.C. Penney, Neiman Marcus, and the once-iconic Sears. Macy’s alone has announced plans to close 66 stores this year, with 150 more closures slated by 2026.
Department stores are facing a perfect storm of challenges, from competition with e-commerce giants like Amazon to changing consumer priorities among younger generations. For Gen Z shoppers, experiences such as travel and dining often take precedence over traditional retail spending.
Inflation has further compounded these issues, squeezing household budgets and leaving less room for discretionary purchases like apparel and home goods—Kohl’s bread and butter.
Kohl’s troubles highlight the consequences of a bloated, inefficient retail sector that has been slow to adapt to market changes. Rather than doubling down on innovative strategies or addressing shifting consumer demands head-on, many department stores have relied on outdated business models.
Moreover, persistent inflation—exacerbated by reckless government spending and regulatory burdens—has created an economic environment that punishes everyday Americans and businesses alike. While policymakers tout progress, retailers like Kohl’s are left picking up the pieces.
As Kohl’s closes these 27 stores, it underscores the importance of prioritizing economic policies that foster growth and reduce inflationary pressures. Without such measures, we may see more household names fade into obscurity.
For now, the chain’s survival hinges on its ability to reimagine itself in an ever-changing retail landscape. Whether it succeeds remains to be seen.
