By Anne D’Innocenzio | The Associated Press
Kohl’s said Friday it was closing 27 underperforming stores in 15 states by April — a fraction of its 1,150 store base — and a large distribution hub in San Bernardino, where nearly 700 people will lose their jobs.
The company noted the San Bernardino e-commerce fulfillment center, or EFC, has been in operation since 2010, one of 15 such centers in Kohl’s supply chain network nationwide.
“In recent years, Kohl’s has increased efficiencies with new technology capabilities at newer EFC facilities 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,” Kohl’s said in a press release Jan. 9.
The announcement comes as the Menomonee Falls, Wisconsin-based chain has posted 11 consecutive quarters of sales declines 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 stay as an adviser to the new CEO and retain his position on Kohl’s board until his retirement this May.
Kingsbury served as Kohl’s interim CEO in December 2022 and was named its permanent leader in February 2023.
Kohl’s declined to disclose the number of employees affected. It said workers have been informed and have been offered a “competitive severance package” or the chance to apply to other open roles at Kohl’s. The list deemed for closing includes 10 in California.
The California locations include one in Los Angeles, two in San Diego County, with the remaining to the north:
Westchester: 8739 S Sepulveda Blvd.
Balboa: 5505 Balboa Ave.
Encinitas: 134 N. El Camino Real
San Luis Obispo: 205 Madonna Road
Fremont: 43782 Christy St.
Mountain View: 350 Showers Drive
Napa: 1116 1st St.
Pleasanton: 4525 Rosewood Dr.
Point West (Sacramento)—1896 Arden Way
San Rafael: 5010 Northgate Drive
“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,” Kingsbury said in a statement.
On Thursday, Macy’s disclosed the locations of 66 stores that it will be closing early this year, including one in a historic landmark building in Philadelphia. The majority of these stores will close during the company’s first fiscal quarter of this year, Macy’s said.
The announcement is part of a strategy announced in February 2024, that calls for shuttering roughly 150 underproductive stores while upgrading its remaining 350 stores through fiscal 2026. The closings come as Macy’s is looking to improve its sales as shoppers have pulled back on discretionary items amid still high inflation.
In November, Macy’s reported falling profit and sales in its fiscal third quarter. It raised sales expectations for the current fiscal year, but lowered profit projections.
The Macy’s stores set to close account for 25% of overall square footage but less than 10% of its sales, the company had said.