Kohl’s has announced it will close 27 underperforming stores in a significant update to its real estate strategy.
The move includes closing its San Bernardino E-commerce Fulfillment Center (EFC) and 27 underperforming stores by April 2025.
These decisions are part of the company’s effort to streamline operations and focus on long-term growth.
San Bernardino Fulfillment Center to Close
The San Bernardino, California, EFC, which has been operational since 2010, is set to close in May 2025 when its lease expires.
The facility is one of 15 EFCs and distribution centers in Kohl’s nationwide supply chain.
In recent years, Kohl’s has improved efficiencies at newer fulfillment centers by adopting advanced technologies.
The company has also expanded its ability to fulfill customer orders directly from store locations. Kohl’s says the changes allow it to maintain strong order fulfillment capabilities without relying on the San Bernardino facility.
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27 Underperforming Stores to Close
Kohl’s also plans to shutter 27 underperforming stores by April 2025. These locations were identified as not meeting performance expectations.
The company stressed its commitment to supporting affected employees during this transition.
All staff at the impacted locations have been informed of the closures and offered competitive severance packages or the opportunity to apply for other roles within the company.
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Supporting Employees and Planning for the Future
Kohl’s CEO, Tom Kingsbury, said:
“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.”
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Looking Ahead
These changes reflect Kohl’s commitment to adapting to an evolving retail landscape. By optimizing its supply chain and focusing on a more profitable store network, Kohl’s aims to strengthen its position in the market while maintaining a customer-first approach.
As the closures unfold in 2025, Kohl’s will continue to invest in technologies and strategies that support long-term growth and operational efficiency. These efforts are expected to reinforce the company’s ability to meet customer needs and thrive in a competitive industry.
