Plus big SoCal distribution center
Publicly-traded Kohl’s Department Store has announced the closure of ten “underperforming” California locations by the end of March 2025. The stores include locations in San Luis Obispo, Sacramento, San Diego, Westchester, Fremont,Encinitas , Mountain View, Pleasanton,Napa and San Rafael. Each store employs around 60.
In San Luis Obispo, Kohl’s is virtually the only department store in town and will leave a big hole in the Madonna Shopping Center. The store building is 62,500sf.
Besides the retail closures in the state, the company plans to shut down its big Southern California distribution center in May eliminating 690 jobs according to a state WARN notice filed January 8.
Kohl’s has more than 1,100 stores in 49 states.
In addition to the 10 stores in California the Wisconsin based company announced it will close 17 more stores in other states across the nation.
The retailer has suffered financial setbacks in the past year and its CEO Tom Kingsbury is stepping down as of January 15. The company stock has declined from around $29 a share in April 2024 to around $13.50 today.
A company statement said their San Bernardino, Calif. facility has been in operation for Kohl’s since 2010. It is one of 15 Distribution Centers in Kohl’s supply chain network across the country. In recent years, Kohl’s has increased efficiencies with new technology capabilities at newer facilities and has expanded the company’s ability to fulfill customer orders from store locations, allowing the company to maintain its ability to fulfill orders without the San Bernardino facility.
” While Kohl’s continues to believe in the health and strength of its profitable store base, these specific locations were underperforming stores.”
The statement continues “All associates have been informed, and offered a competitive severance package or the ability to apply to other open roles at Kohl’s. Kohl’s thanks our associates for their work and is working to support our associates during this transition.”
“We always take these decisions very seriously,” said Tom Kingsbury, Kohl’s chief executive officer. “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.”
Kohl’s had been rumored to weighing store closures back in November at a news conference after” Kingsbury owned up to the fact that many of Kohl’s turnaround tactics have failed and that the retailer is now walking them back. In January, Michaels CEO Ashley Buchanan will replace Kingsbury as CEO” in a press account.