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Suzanne Blake

By Suzanne Blake

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Kohl's announced on Thursday that it is closing nearly 30 stores this year across the country as the department store looks to cut down on underperforming locations.

Why It Matters

Retail chains have faced economic turbulence since the coronavirus pandemic, as many consumers have turned toward online shopping over brick-and-mortar stores.

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Almost 25 percent of America's largest shopping malls are anticipated to close by 2027, according to research from real estate services firm Green Street Advisors.

Which Kohl's Stores Are Closing in 2025?

Kohl's is closing 27 stores across several states, with California leading the charge, as the retailer likely hopes to avoid bankruptcy due to underperforming locations. The stores will be closed by April, according to the company's press release.

The closing locations include:

Alabama

Arkansas

California

Colorado

Georgia

Idaho

Illinois

Massachusetts

New Jersey

Ohio

Oregon

Pennsylvania

Texas

Utah

Virginia

Why Is Kohl's Closing Stores?

"While Kohl's continues to believe in the health and strength of its profitable store base, these specific locations were underperforming stores," Kohl's said in its press release about the closures.

Competitors Sears and JCPenney both declared bankruptcy after experiencing similar economic strife.

What Happens to the Kohl's Employees?

All impacted Kohl's employees have been alerted, according to the company. They've also been offered a "competitive severance package" or the ability to apply to other open roles at Kohl's, the company said in its press release.

Can I Still Use My Kohl's Cash at a Closing Store?

Many shoppers have been able to secure Kohl's cash on qualified purchases that they made at the retailer.

Generally, shoppers' Kohl's Rewards balance is converted and issued in $5 Kohl's cash increments on the first of the following month after being earned.

All stores should continue to accept Kohl's cash, but keep in mind it is only valid for 30 days.

How Many Kohl's Stores Are in the U.S.?

Kohl's operates around 1,150 stores across America and is based in Wisconsin.

The 27 scheduled closures only make up a little under 3 percent of all locations.

Kohl's

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What People Are Saying

Tom Kingsbury, Kohl's outgoing CEO, 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."

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "While Kohl's is closing just 27 stores nationwide, a number that makes up less than three percent of its retail locations, it's easy to see why many would label this yet another event that's a sign of the times for retail. It all comes down to foot traffic at these locations, and in our current economic climate, retailers like Kohl's are more likely to close underperforming stores quickly compared to retailers in past decades."

R.J. Hottovy, head of analytical research at Placer.ai, told Newsweek: "Kohl's decision to close 27 stores isn't particularly surprising. Over the past year, many retailers have focused on optimizing their store footprints by closing underperforming locations and reallocating resources to enhance existing stores. Additionally, population migration has shifted trade areas, making it more challenging for some locations to thrive. Notably, many of Kohl's planned closures are concentrated in California, where several markets have experienced population declines in recent years."

What Happens Next

During this time, Kohl's is also seeing some leadership shakeup, as CEO Tom Kingsbury leaves the company and Michaels CEO Ashley Buchanan takes charge this month.

"Consumers have seen many retailers over the last 15 years forced into bankruptcy and mass closures because they failed to adapt to the online marketplace and differentiate their retail locations to get customers in the door," Beene said. "Kohl's is attempting to avoid that same fate by strategically cutting locations and refocusing their efforts."

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