Shoppers browse a brightly lit department store.
After shuttering 27 stores last year, Kohl’s is shifting its focus to optimizing its existing 1,150 locations nationwide. CEO Michael Bender announced the change in strategy during the company’s quarterly earnings call, signaling a move away from widespread closures.
The closures in 2023, which spanned 15 states, were part of an effort to improve the department store chain’s financial health amid declining sales. Bender, who took the helm in November, emphasized that the company is not planning any major changes to its store base at this time.
“The focus for us is actually on optimizing what we already have,” Bender stated, adding that the company will concentrate on maximizing store productivity. Kohl’s will continue its annual reviews of store performance to identify opportunities for relocation or improvement.
Kohl’s has faced increasing competition from e-commerce giants like Amazon and discount retailers such as Ross Stores. CFO Jill Timm noted that the company is working to drive traffic both in stores and online, with a focus on improving inventory management to encourage in-store shopping.
The company projects that full-year sales will be flat to 2% lower, compared with analysts’ estimates of a 0.7% decline to $14.85 billion. In the most recent quarter, Kohl’s posted sales of $4.97 billion, slightly below analysts’ expectations of $5.03 billion.
Kohl’s stock rose over 3% following the announcement, though it’s down 6.89% in the past five days. Shares are down over 41% year to date, but have risen more than 42% in the past year.
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