Kohl’s Closing Stores: What You Should Know
In an effort to make operations more efficient and financially stable, Kohl’s has reported it will close 27 low-performing stores in the United States. Two of those stores will be located in the Cincinnati area — one on Hunt Road in Blue Ash and the other on Cincinnati Mills Drive in Forest Park. The stores will officially close after business hours on Saturday, according to the Kohl’s website.
Why is Kohl’s Stores Closing?
Kohl’s decision was also part of a broader attempt to shore up the company’s long-term health and growth, the company’s CEO, Tom Kingsbury, stated.
“As we continue to build on our long-term growth strategy, it is essential that we also take tough but necessary steps to support the health and future of our business for our customers and our teams,” Kingsbury said.
The closures are proof of Kohl’s cost-cutting efforts, resource optimization, and prioritization of more profitable stores. This is a typical situation among retail giants in the face of post-pandemic realities, inflation, and altered consumer behavior.
Impact on Employees
The company has made sure that each and every employee in the impacted stores has been informed. They have been offered a competitive severance package and a chance to apply for positions in other operating Kohl’s stores. This is in a bid to ease the transition for impacted workers.
More Store Closures Coming
Along with the 27 department stores, Kohl’s has announced that it will close its San Bernardino E-Commerce Distribution Center in California when its lease is up in May. This is also a sign that the company is streamlining and cutting costs.
Retail Industry Also Struggling with Same Challenges
Kohl’s is not alone in shuttering its stores. Retail competitors such as Macy’s are doing the same. Macy’s recently issued a statement indicating it will be closing several Pennsylvania stores, including its iconic store famous for its old organ and eagle.
What’s Ahead for Kohl’s?
Where the kohl’s stores closing are heading the wrong way, they represent just a segment of the bigger play to remake to address changing marketplace demands for Kohl’s. The firm keeps on emphasizing the development of its online presence and enhanced customer experience across its current stores.
Final Thoughts
The closure of 27 Kohl’s stores is evidence that the retail sector cannot be profitable with the changing patterns of consumers’ shopping. Shutdowns of the stores will definitely be hard on affected employees and neighborhood residents, but Kohl’s effort to offer severance packages and transfer promotions among its stores attempts to cushion the blow.
