Honestly, walking into a Kohl's lately feels a bit like visiting an old friend who’s trying really hard to stay upbeat while their life is kind of a mess. You see the Sephora counters looking all shiny and prestige, but then you glance at the racks of Sonoma t-shirts and wonder where everyone went. It’s no secret the retail world is a meat grinder right now.
Kohl's recently pulled the trigger on a plan that had been brewing for a while: shutting down 27 stores across 15 states. These weren't just random picks from a hat. Management labeled them "underperforming," which is corporate-speak for "this location is bleeding money and we can't fix it."
For a company with over 1,150 locations, 27 might sound like a drop in the bucket. It's less than 3% of their total footprint. But for the people in places like Blue Ash, Ohio, or San Rafael, California, it’s a big deal. It’s the loss of a neighborhood anchor.
Why Kohl's to Close 27 Underperforming Stores Nationwide is Only Part of the Story
If you’ve been following the numbers, this wasn't exactly a shocker. By early 2026, the retail landscape has become even more polarized. You’re either a luxury destination or a deep-discount king. Kohl's? They’re stuck in that awkward middle ground.
The company has dealt with a staggering 12 consecutive quarters of sales declines. Think about that. Three straight years of watching the "total sales" line on the spreadsheet go down. That’s enough to make any board of directors sweat. To make matters more intense, the stock price took a massive 50% dive throughout 2024, leading into this current restructuring phase.
The Real Reason Behind the Move
It’s easy to blame Amazon. Everyone does. But the reality is more nuanced. Tom Kingsbury, the former CEO who handed the reins to Ashley Buchanan (the former Michaels boss), was pretty blunt about it. He noted that the company had to take "difficult but necessary actions" to keep the rest of the business healthy. Basically, they're cutting off the limb to save the body.
Here is the thing: Kohl's actually owns about $6 billion worth of its real estate. That’s a massive safety net. Unlike other retailers that lease everything and can just walk away when things get tough, Kohl’s has a lot of capital tied up in bricks and mortar. This makes closing a store a very deliberate, often painful financial calculation regarding lease breaks and property value.
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Where the Axe Fell
California took the biggest hit. Ten stores. Gone. From the Balboa area in San Diego to the Silicon Valley fringes in Mountain View, the Golden State’s high operating costs finally caught up with underperforming units.
Other spots on the list included:
- Plainfield, Illinois: A location on Route 59 that just couldn't keep pace.
- Herndon, Virginia: Interestingly, this one had two other Kohl's within a 20-minute drive. Talk about cannibalizing your own sales.
- Blue Ash and Forest Park, Ohio: Two more casualties in the Cincinnati market.
- Stoughton, Massachusetts: Leaving the state with 23 remaining locations.
It wasn't just the stores, either. They also shuttered a massive e-commerce fulfillment center in San Bernardino. They’re shifting that weight to a newer, tech-heavy facility in Plainfield, Indiana. It's all about efficiency now.
Is the Sephora Partnership Saving the Brand?
You can’t talk about Kohl's without talking about Sephora. It was supposed to be the "Great Hope." And in many ways, it is. If you walk into a Kohl's today, the Sephora section is usually the only place with a line.
Management is doubling down on this. They’re planning to bring MAC Cosmetics into 850 of those Sephora-at-Kohl’s shops by the spring of 2026. They want you to come in for a mascara and hopefully leave with a pair of Tek Gear leggings.
But there's a catch.
While Sephora is driving "foot traffic," it hasn't necessarily stopped the "sales bleed" in other departments. People come for the makeup, but they aren't always sticking around to browse the home goods or the men's dress shirts. The "basket size"—how much you actually spend—is a metric the company is fighting to grow.
The "Amazon Return" Paradox
Remember when Kohl's started taking Amazon returns? We all thought it was genius. Get people in the door with their brown boxes, hand them a $5 Kohl's Cash coupon, and watch the profits roll in.
Well, the honeymoon phase is over. Analysts and even some former employees on forums like Reddit have pointed out that while it brings people in, those people are often "conversion-proof." They drop off the box, use the coupon on a pack of socks they didn't really need, and leave. It’s a lot of logistical headache for a relatively small payoff in actual retail growth.
The 2026 Outlook: What Happens Next?
So, is Kohl's going the way of Sears or JCPenney? Not necessarily. But they are in a "prove it" year.
The company recently slashed its dividend from $0.50 down to $0.125. That saved them about $150 million in cash. In the world of high finance, cutting a dividend is usually a "break glass in case of emergency" move. It tells investors: "We need this money to stay alive, not to pay you."
Strategic Shifts to Watch
- Reclaiming the Core Customer: For a few years, Kohl's tried to chase a younger, trendier demographic. They kind of forgot about the "Kohl's Mom" who just wants reliable brands and a good sale. CEO Ashley Buchanan is reportedly trying to pivot back to that "value and quality" sweet spot.
- Inventory Control: They’ve managed to get inventory down by about 5% year-over-year. This is huge. It means they aren't sitting on piles of unsold clothes that they eventually have to clear out at 80% off.
- Real Estate Liquidation: Some analysts believe that if the stock stays low, a private equity firm might try to buy the whole company just to sell off the real estate. That would be the end of Kohl's as we know it.
Actionable Insights for Shoppers and Investors
If you’re a regular shopper or someone keeping an eye on the retail sector, here is what you actually need to know about the current situation.
For the Shoppers:
Check the "Store Locator" on the Kohl's app frequently. If your local store is on an "underperforming" list, keep an eye out for clearance sales that go deeper than the usual 30% off. However, don't expect a "going out of business" vibe across the whole chain; the 27 closures are targeted strikes, not a total retreat. Also, if you have Kohl’s Cash, use it. While the company isn't in immediate danger of bankruptcy, retail is volatile.
For the Employees:
The company has been offering severance packages and the chance to transfer to other stores. If your location is closing, take the transfer if it's within a reasonable distance. Kohl's still has over 1,000 stores, and they are prioritizing retaining "legacy" talent even as they trim the fat.
For the Skeptics:
The 2030 deadline is the one to watch. That’s when a massive chunk of the company's debt comes due. Between now and then, expect to see 20 to 30 more stores close annually as leases expire. It's a slow-motion diet. They’re trying to become a leaner, 500-to-700 store chain that actually makes a profit, rather than a 1,100-store behemoth that's struggling to stay relevant.
The 27 store closures in 2025 and early 2026 weren't a death knell. They were a reality check. In an era where you can get anything delivered to your door in two hours, a department store has to give you a reason to get off the couch. Kohl’s is betting that Sephora and a return to "value" will be that reason. Whether it works or not is something we'll see in the quarterly reports throughout the rest of the year.
Next Steps for You
Check the official Kohl's corporate newsroom for the finalized list of addresses to see if your local spot is affected. If it is, ensure any outstanding gift cards or reward points are redeemed before the specific "last day of business" date for that location, which for most of these 27 stores, falls before the end of the current fiscal quarter.