Kohl’s, for example, will close 27 of its lowest performing stores this Saturday, March 29 as part of their admitted restructuring strategy to return to a more competitive footing. The mega-retailer will remain all over the United States. It is home to the more than 1,120 store locations nationwide. The move comes after the retailer at the beginning of January revealed its intentions of shoring up its wider store portfolio. In response, it has chosen to shutter these underperforming stores.
The closures stem purely from Kohl’s determination that the stores which are being targeted for closure were failing to perform to the company’s standards. Despite the closures, the company believes its remaining stores are cumulatively very healthy. Yet, it is equally hopeful looking ahead, as it continues to shift with the demands of an evolving market. As a further example of this adaptation, Kohl’s has been moving to soon have most of its online orders shipped directly to customers from its chain of stores.
Strategic Shift in Operations
Outside of shuttering physical stores, Kohl’s is taking the knife to its e-commerce business. The company has recently announced their plans to terminate operations of its e-commerce fulfillment center in San Bernardino, California, effective May. One way Kohl’s is doing that is through improving operational efficiencies. They’ll lean on their current store footprint to house inventory for online orders.
Tom Kingsbury, a spokesperson for Kohl's, emphasized the importance of these changes for the company's long-term success.
"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." – Tom Kingsbury
A Strong Presence Nationwide
Kohl’s has been an industry leader in the retail civil disobedience movement since 2010. Despite these recent closings, the brand is still in as strong a position as ever in many markets. Notable examples are Spring Hill in West Dundee, IL, and Little Rock West. Other high profile examples include Spanish Fort, Arapahoe Crossing in Aurora, Balboa in San Diego and Duluth.
These centers are part of the extensive network of over 1,120 stores that continue to serve customers across the nation. By focusing on more productive stores and enhancing their capabilities for online order fulfillment, Kohl's aims to optimize its operations and deliver better service to its customers.
Commitment to Future Growth
While Kohl’s restructuring attempt underscores some of the obvious moves towards continued positive growth and adapting to the new retail reality. In response, the company has been shuttering unprofitable locations. This decision, combined with expanding e-commerce logistics, goes a long way to keeping it competitive and on the map.
