Why is Kohl’s Closing Stores, and how many locations are left in 2023? Several industries, including retail, have found ways to come out from the Coronavirus pandemic hits. But that might not prevent stores like Kohl’s from closing their stores throughout the United States. Also, Kohl’s closed its locations a few years earlier, in 2019.
Now, the question arises: Should consumers be worried about Kohl’s stores closing? In Feb 2023, analysts for UBS predicted that the department stores would close their locations due to sales decline and inflation in the industry this year.
We are not saying that this information sets the stage for what the retail industry expects for the future, but it may give you an outlook on where it is navigating.
Moreover, we are still determining whether Kohl’s stores will close their location in 2023. Also, the analysts should have mentioned that it is closing its stores. According to UBS analysts, retail stores like Kohl’s and Nordstrom will continue to shut down some of their locations this year due to heavy pressure in the first half of 2023.
The outlook for the Kohl’s department store represented that the department store now wants to transform it into a latest focused lifestyle concept. In order to brighten the future of Kohl’s department store, the retailer decided to open more stores throughout the United States. Those stores would be smaller, hyperlocal stores. It also partnered with Sephora to drive future growth into a 2 billion US dollars business.
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Why Is Kohl’s Closing Stores?
Kohl’s is closing stores due to a decline in sales. Not only sales decline is the factor that led the company to close its several locations. Although sales decline is the primary factor but not the only one.
The first quarter of the 2022 financial report was released by Kohl’s; the report stated, “The year has initiated out against our expectations.” Moreover, “The Net sales were observed to be dropped by 5.2 percent as compared to the previous year’s financial report. So, the company decided to close its locations or implement changes. Moreover, it partnered with Sephora for good.”
The series did not stop there; it continued in the third quarter of 2022 and reported that net sales declined by 7.2 percent.
As of the third quarter of 2022, it is estimated that the company generated around 4.28 billion US dollars. As of December 1, 2022, The total debt was estimated at nearly 5.48 billion US dollars.
Heavy debt and declining sales indicated that the company was struggling financially. The company announced at the start of this year that it might close several locations and lay off employees.
What Kohl’s Stores Are Closing In California?
In 2016, Kohl’s shut down 18 US stores, including one in California. It is noted that nine stores were closed in California. All these stores have closed their doors for good. Mira Mesa Boulevard’s location was also closed for the betterment.
When the stores were closed, employees were affected by this move greatly, but they offered jobs to those affected employees at other nearby Kohl’s locations. Moreover, those who did not prefer jobs at other Kohl’s stores were offered to choose to take a severance package at the time of mass layoffs.
Here you can check the list of all 9 stores that have been closed in California.
- #7279 N. Rosemead Blvd. – Arcadia, CA, (San Gabriel, California).
- #27426 Antonio Parkway – Ladera Ranch, CA (Ladera Ranch, California).
- #8140 Mira Mesa Blvd – Mira Mesa, CA, (San Diego, California).
- #1351 W. 17th St., Santa Ana – CA, (Santa Ana, California).
- #2323 McKee Road – San Jose East, CA (San Jose, California).
- #6651 N. Fallbrook Ave. – West Hills, CA (West Hills, California).
- #10201 Valley View St. – Cypress, CA (Cypress, California).
- #233 S. Mountain Ave. – Upland South, (Upland, California).
- #11051 Olson Drive – Rancho Cordova, CA (Rancho Cordova, California).
Which Kohl’s Stores Are Closing In Florida?
In 2016, Kohl’s announced to close 18 locations throughout the United States, including two locations in Florida. In this move, the company laid off more than 1,500 of its workforce at closure.
The stores that were closed in Florida include:
- #700 W. 49th St. – Hialeah, FL (Hialeah, Florida).
- #6785 Thomasville Road – Tallahassee, FL (Tallahassee, Florida).
Which Other Kohl’s Stores Are Closing?
Let’s put light on the rest of the Kohl’s stores that have been closed in 2016.
- #2342 Holcomb Bridge Road – Holcomb Bridge, GA (Roswell, Georgia).
- #2929 Turner Hill Road – Lithonia, GA (Lithonia, Georgia. Closed in November 2016).
- #3840 E. Main St. – #Saint Charles, IL (Saint Charles, Illinois).
- #9579 S. Blvd. – Pineville, NC (Charlotte, North Carolina).
- #9060 N. Green Bay Road – #Brown Deer, WI (Brown Deer, Wisconsin).
- #4820 Briarcliff Road – Northlake Mall, GA (Atlanta, Georgia).
- #200 Nassau Park Blvd. – Princeton, NJ (Princeton, New Jersey).
What Is Kohl’s Famous For?
Kohl’s is famous for emphasizing brand, affordability, value, and quality products. It offers discounts, loyalty programs, and promotions to its customers mostly. Additionally, it provides events, coupons, sales, and rewards programs to attract more customers, boost the shopping experience, and offer cost savings programs.
Kohl’s Corp., an American department store retail chain. It is also known as Kohl’s across the country. The retail chain was established in 1962 in Menomonee Falls, Wisconsin. It was founded by Maxwell Kohl.
It specializes in various products, such as footwear, clothing, beauty products, home appliances, accessories, and several other items. It runs hundreds of department Stores throughout the United States. It offers private label and national brands products that range from lower to higher price points that meet every consumer’s demands.
Besides its offline presence, Kohl’s put a strong foothold online through its e-commerce platform. If customers cannot go to its physical stores, they can browse their desired products and purchase from its online platform. This might be a convenient way to get products without going to physical stores.
Moreover, the company partnered with famous personalities to provide exclusive collections and collaborations. Fashion designers, celebrities, and several other personalities also collaborated to give an ultimate touch to its products.
How Many Kohl’s Are Left In The US?
As of June 13, 2023, hundreds of Kohl’s stores exist throughout the United States. It is estimated that the total number of its stores is 1,170, and the state with the most Kohl’s stores in California has 117 stores.
Let’s explore the top 10 states with the most number of Kohl’s stores in the United States:
The Top three states with the most significant number of Kohl’s stores are California, Texas, and Illinois.
- California with 117 Kohl’s stores, which is nearly 10 percent of the total number of Kohl’s stores.
- Texas with 87 stores, which is nearly 7 percent of the total number of Kohl’s stores.
- Illinois with 66 stores, which is nearly 6 percent of the total number of Kohl’s stores.
Furthermore, the rest of the seven locations with a large number of Kohl’s stores are as follows:
- Ohio has 59 stores (5 percent of the total number of Kohl’s stores).
- Florida has 51 stores (4 percent of the total number of Kohl’s stores).
- New York has 50 stores (4 percent of the total number of Kohl’s stores).
- Pennsylvania has 50 stores (4 percent of the total number of Kohl’s stores).
- Michigan has 46 stores (4 percent of the total number of Kohl’s stores).
- Wisconsin has 41 stores (4 percent of the total number of Kohl’s stores).
- Indiana has 41 stores (4 percent of the total number of Kohl’s stores).
Who Are Kohl’s Biggest Competitors?
The most significant competitors of Kohl’s across the United States include:
- Dollar General has 19,165 stores throughout the United States, 17,995 more locations than Kohl’s.
- Target has 1,950 stores throughout the United States, which is 780 more locations than Kohl’s.
- Bath & Body Works has 1,712 stores throughout the United States, 542 more locations than Kohl’s.
- Ross Stores has 1,704 stores throughout the United States, 534 more locations than Kohl’s.
- Big Lots has 1,428 stores throughout the United States, 258 more locations than Kohl’s.
Also read – Is Kohl’s Going Out of Business
Final Thoughts On Kohl’s Closing Stores
Kohl’s closed several of its locations in 2016 and is expected to continue in 2023, along with other department stores closures such as Macy’s, Nordstrom, and several more. It is because of high competition, economic challenges, and the inability to meet consumers’ needs and preferences.
Kohl’s is following in the footsteps of other department stores and closing its locations. Macy’s already announced to shut down several of its and Nordstrom’s locations. It is believed that the Coronavirus pandemic has impacted the retail industry along with several other industries. It put pressure on and forced them to shut down their unproductive locations to drive future growth.
Not all retailers have indeed been impacted by the wave of COVID-19 equally; some of the retailers have found ways to recover and streamline their lines through brand partnerships and by several other means. But the case is different with the department stores; they are still under pressure and decided to close their unprofitable stores. Similarly, Kohl’s is under pressure due to the rising inflation and recession fears and the cheaper options in demand.
After observing the entire case, the UBS analysts forecasted that the sales for the department stores would remain under pressure in the first half of 2023. Moreover, they suggested that retailers should have to adopt more customer-centric strategies along with transformative strategies.