Kohl’s Corporation, one of the largest department store chains in the U.S., has announced a significant restructuring plan, which includes laying off approximately 10% of its workforce and shutting down multiple stores across the country.
The decision comes as the retailer faces declining sales, rising operational costs, and increased competition in the retail industry.
According to CNBC, the company plans to eliminate around 10% of its corporate and store-level employees in an effort to streamline operations and cut costs. This move is expected to impact thousands of workers nationwide.
Additionally, Kohl’s has confirmed the closure of several underperforming stores, though the exact locations have not yet been disclosed.
A spokesperson for the company mentioned that the closures are part of a broader initiative to “focus on profitability and adapt to changing consumer shopping habits.”
In its most recent earnings report, Kohl’s reported a 6.9% drop in comparable store sales compared to the previous year, according to Yahoo Finance.
This decline has been attributed to weakening consumer demand, inflation, and a shift in shopping trends favoring online retailers and discount stores.
Retail analysts suggest that Kohl’s has struggled to compete with e-commerce giants like Amazon and fast-fashion brands that offer more convenience and competitive pricing.
Additionally, department stores in general have seen declining foot traffic as more consumers prefer shopping online.
Kohl’s CEO, Tom Kingsbury, stated in a press release that the company’s restructuring plan aims to “enhance long-term profitability and reposition Kohl’s for sustainable growth.”
The company hopes that by cutting costs and focusing on high-performing locations, it can weather the economic challenges and improve its financial outlook.
Kohl’s is not the only major retailer facing difficulties. Macy’s, Nordstrom, and JCPenney have also announced store closures and layoffs in recent years, as brick-and-mortar retail struggles in the face of digital competition.
Retail experts predict that unless Kohl’s successfully adapts to shifting consumer preferences—such as investing more in e-commerce, loyalty programs, and exclusive product lines—the company could face further downsizing in the future.
While Kohl’s has assured customers that it remains committed to offering value-driven products, the current layoffs and store closures signal a challenging road ahead.
The company is expected to provide further updates in the coming months as it implements its restructuring strategy.
For employees and shoppers alike, the announcement marks a significant shift in Kohl’s retail presence, reflecting broader trends in the evolving retail landscape.