It’s been a rough ride for department stores lately. You’ve seen it at the local mall—the empty storefronts, the "Everything Must Go" signs, and that general feeling of a retail era ending. Now, the news is official: Kohl's to close 27 underperforming stores nationwide by April, a move that marks a sharp pivot for a company that once bragged its "off-mall" strategy made it immune to the retail apocalypse.
Honestly, it’s a bit of a shocker.
For years, Kohl’s was the darling of retail analysts because they didn’t rely on dying malls. They were in strip centers. You could park right in front, run in for a pair of jeans, and be out in ten minutes. But even that convenience hasn't been enough to stop 11 consecutive quarters of sales declines.
What Really Happened With the Kohl's Store Closures
The list of closures is heavy on the West Coast. California is getting hit the hardest, losing ten locations in places like San Diego, San Rafael, and San Jose. It’s not just a random cull; it’s a surgical strike on stores that simply aren't pulling their weight in an era where rent and labor costs are skyrocketing.
CEO Tom Kingsbury, who is actually stepping down into an advisory role this year to make way for former Michaels CEO Ashley Buchanan, didn't sugarcoat it. He basically said these actions were "necessary" to support the long-term health of the business.
It’s a classic "trimming the fat" move.
The company is also shuttering a massive e-commerce fulfillment center in San Bernardino, California. Why? Because they’ve figured out how to ship from their remaining stores more efficiently. Keeping a giant warehouse open when you can just use the back room of a local shop doesn't make sense anymore.
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Is the Sephora Partnership Enough?
You can’t talk about Kohl’s without talking about Sephora at Kohl's. It has been the one bright spot in an otherwise gloomy balance sheet. If you’ve walked into a Kohl's lately, you’ve seen the bright lights and the prestige makeup.
It’s working. Mostly.
In late 2025, beauty sales were up double digits. The problem is that while people are coming in for their Fenty Beauty foundation or Rare Beauty blush, they aren't necessarily wandering over to the clothing section to buy a sweater.
"Without Sephora, Kohl's comparable sales would likely be down 9%," noted analysts at Evercore ISI.
That’s a terrifying statistic for a department store. It means the "core" Kohl's customer—the one looking for Sonoma lifestyle goods and Croft & Barrow basics—is disappearing. The beauty shops are a "store-within-a-store" success, but they can't carry the weight of a 100,000-square-foot building by themselves.
The Strategy Shift: Smaller and Smarter
Kohl's to close 27 underperforming stores nationwide by April is part of a larger trend we’re seeing across the board. Macy’s is doing it. Walgreens is doing it. Even Kroger is shuttering underperforming spots.
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The 2026 retail landscape is about "density" rather than "footprint."
Kohl’s has roughly 1,150 stores. Closing 27 is only about 2% of their fleet. It’s a drop in the bucket, really. But it signals that the era of "growth at any cost" is dead. The new CEO, Ashley Buchanan, is expected to bring a "discounter" mentality—think leaner inventory and faster turnover.
If you're a regular shopper, you'll likely see:
- More "Impulse" Queuing: Those long lines filled with cheap gadgets and snacks? They’re expanding to over 600 stores because they have high profit margins.
- Tighter Inventories: They are tired of having to clear out racks at 80% off. Expect fewer options, but more relevant ones.
- Babies "R" Us Expansion: Like Sephora, Kohl's is betting on partnerships to fill up all that empty floor space.
Real Talk: What This Means for You
If your local store is on the list, you’ve probably already seen the "Store Closing" banners. Most of these locations will be gone by the end of April.
Employees aren't being totally left in the lurch, which is a rare bit of good news. Kohl's has publicly stated that associates are being offered severance or the chance to transfer to other locations. Of course, "transferring" only works if there's another store within a reasonable driving distance, which isn't always the case in rural areas.
The Financial Reality
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The stock has been a roller coaster. In late 2025, it took a 5% hit after a disappointing earnings report, despite "beating" expectations on profit. Investors are jumpy. They see the high interest rates on Kohl's debt—specifically those 10% notes they issued recently—and they worry about the long-term viability of the department store model.
But here’s the thing: Kohl’s still makes money. They reported a net income of $147 million for the first nine months of the 2025 fiscal year. They aren't going bankrupt tomorrow. They are just becoming a smaller, more focused version of themselves.
Actionable Steps for Kohl's Shoppers
If you shop at Kohl's, don't panic, but do be smart about your rewards and returns.
- Check Your Store Status: Use the Kohl’s store locator on their website. If your store is closing, it will usually be flagged.
- Burn Your Kohl’s Cash: If your local store is shuttering, don't sit on those rewards. Use them now. While they are valid at any location or online, it's easier to spend them when you can physically walk the aisles.
- Watch for Liquidation Sales: Closing stores usually start with 10–30% off and ramp up as April approaches. If you need basics like towels or kids' clothes, March is the sweet spot for deals.
- Mind the Return Policy: Items bought at a "closing" sale are almost always final sale. Don't buy that air fryer unless you're sure you want it.
The move for Kohl's to close 27 underperforming stores nationwide by April is a symptom of a larger shift. The middle-class department store is being squeezed from both ends—by luxury on the top and extreme discounters like TJ Maxx and Ross on the bottom. To survive, Kohl's has to be more than just a place to return Amazon packages. They have to give people a reason to stay and shop.
The next few months under new leadership will determine if these 27 closures are the end of the pruning, or just the beginning.