One Of America's Biggest Discount Retail Stores Is Closing More Locations (And Having Huge Sales)

2024 marked a brutal 12 months for retail in the United States. Around 7,000 retail outlets permanently closed their doors. With the major retail chains struggling to tackle inflation after the Covid-19 pandemic and to adjust to the dominant e-commerce landscape, 2025 looks like it will be even worse for the major department store chains. None of these chains are companies that have come roaring back from bankruptcy.

Brick-and-mortar locations could lose upwards of 15,000 physical stores in 2025, more than double last year's numbers, according to Coresight Research. Kohl's is the latest struggling retailer to join the ranks of chains closing more stores. This discount retailer presently has 1,165 outlets in every state except for Hawaii.

Kohl's has announced major store closures for the coming year. The discount clothing retailer will close out over two dozen outlets throughout 15 states. Besides this, the company is shutting down a fulfillment and distribution center, one of 15 it currently operates, according to the Sun.

Kohl's faces problems with underperforming stores that have been plaguing it in the aftermath of the Coronavirus pandemic. Because of these persistent issues with lagging stores, it is going to shut down 27 of its locations by the last day of April. This equates to not quite 3% of Kohl's total number of stores, according to the Sun. The department store chain is closing fewer locations than a discount retailer known for good furniture deals.

Former CEO Tom Kingsbury of Kohl's shared in a statement that "We always take these decisions very seriously. 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 company expanded on this, claiming, "While Kohl's continues to believe in the health and strength of its profitable store base, these specific locations were underperforming stores."

Customers have frequented the chain in the past because of the low prices Kohl's offers. Thanks to the store closings, prices at the retailer are set to drop further still. The Sun reported that one store employee stated discounts would reach up to 90%.

Leadership changes at Kohl's have also led to the sudden decision to close underperforming stores. CEO Tom Kingsbury resigned on January 15 from the top post after serving as head of the company for three years. Ashley Buchanan, who had served in top executive leadership roles at Michael's and Walmart, replaced him. Kingsbury continues to advise Buchanan, providing some needed leadership continuity.

Of the Kohl's stores closing, one outlet will cease operations in Alabama, Arkansas, Colorado, Georgia, Idaho, Massachusetts, New Jersey, Oregon, Pennsylvania, Texas, and Utah. Two Kohl's will close in each of Illinois, Ohio, and Virginia. California will be impacted most drastically with 10 locations shutting down. The Golden State will also lose its San Bernardino e-commerce fulfillment center set to close in May, according to the Sun.

Kohl's is still doing better than some popular online apparel brands filing for bankruptcy. The chain retailer is trying to reassure the public regarding its impacted employees. It has informed all affected workers of their choices. Employees of the chain can opt for a severance package if they do not wish to apply for other jobs at the department store chain.