The Unavoidable List: 7 Crucial Facts About Kohl's Store Closings In 2025 And The Future Of Retail

The retail landscape is undergoing a dramatic transformation, and department store giant Kohl's is making significant moves to adapt. As of today, December 10, 2025, the most crucial and recent development is the company's confirmed plan to shutter 27 "underperforming" store locations across the United States. This strategic, yet painful, decision is a direct response to shifting consumer habits, increased competition from e-commerce rivals, and the need to optimize the company's physical retail footprint for long-term profitability. This wave of closures, slated to be completed by April 2025, is part of a broader real estate and turnaround strategy spearheaded by CEO Tom Kingsbury. While the company operates over 1,150 stores nationwide, these specific closures represent a calculated effort to trim the fat, allowing Kohl's to reallocate resources toward its most profitable locations and burgeoning initiatives, such as its partnership with Sephora and its new small-format store concept. The move signals a clear commitment to financial health over sheer store count.

The Confirmed List of Kohl's Underperforming Store Closures by April 2025

Kohl's officially announced that 27 locations would be permanently closing their doors by April 2025. The company has been transparent that the primary driver for this decision is the poor financial performance of these specific stores, which simply did not meet the retailer's stringent performance metrics. This is not a mass exodus but a surgical strike aimed at strengthening the overall corporate entity. The closures span 15 states, affecting communities from the West Coast to the South. The full, confirmed list of locations set for closure includes, but is not limited to, the following:

• Alabama: Spanish Fort - 21000 Town Center Ave.
• Arkansas: Little Rock West - 13909 Chenal Pkwy.
• California:
  • Balboa (San Diego) - 5505 Balboa Avenue
  • Encinitas - 134 N El Camino Real
  • Fremont - 43782 Christy Street
  • Mountain View - 350 Castro Street
• Other States: The closures are spread across 15 states, indicating a nationwide effort to streamline the retail store footprint and eliminate low-performing assets.

The impact of these closures extends beyond the physical buildings; it affects hundreds of employees, a critical factor for local economies. Kohl's has stated that it plans to offer severance packages and, where possible, transfer affected associates to nearby Kohl’s locations. This focus on employee retention and transition is a key part of managing the public relations aspect of the store closures.

Kohl's Real Estate Strategy: Why 27 Stores Are Closing While Others Open

The decision to close 27 stores might suggest a company in retreat, but the reality of Kohl's real estate strategy is far more nuanced. The closures are a component of a larger, aggressive turnaround plan designed to reset the retailer for future growth in a challenging retail environment.

The Shift to Smaller-Format Stores

A major pillar of Kohl's future strategy involves a significant investment in a new, smaller-format store concept. While the traditional Kohl's store is often a large, anchor-sized department store, the company has announced plans to expand a smaller model it has been piloting. This strategy aims to open approximately 100 of these scaled-down stores. The smaller stores are strategically located in markets where a full-sized Kohl's may not be feasible or necessary, allowing the company to penetrate new trade areas with a lower operational cost. This concept is a direct response to the economic pressures of maintaining massive retail spaces and the desire to be closer to the customer in a more convenient, localized setting. The smaller footprint also allows for a more curated product assortment, focusing on top-performing categories.

Leveraging the Sephora Partnership

Another critical element influencing Kohl's store footprint is the highly successful partnership with beauty retailer Sephora. The integration of "Sephora at Kohl's" shops within existing locations has been a significant driver of traffic and revenue. This initiative is a core part of the company's plan to make its stores a destination. The 27 closures are likely in locations where the Sephora partnership was either not implemented or failed to provide the necessary boost in customer engagement and sales. The overall commitment to the physical store experience remains strong, with the company aiming to use strategic investments to drive growth.

The Broader Context: Department Store Closures and Retail Evolution

Kohl's is not an isolated case. The closure of 27 stores by April 2025 must be viewed within the larger context of a rapidly evolving retail industry. Traditional department stores, including competitors like Macy's (which is also closing underperforming locations), are struggling to maintain relevance against the dominance of e-commerce giants and fast-fashion retailers. The current era of retail demands an omnichannel approach—a seamless integration of physical stores, online shopping, and mobile experiences. Kohl's is actively pushing this agenda by investing in digital capabilities and supply chain improvements, alongside its real estate changes. The closure of underperforming stores frees up capital that can be reinvested into these critical areas.

Key Entities and Strategic Focus Areas for Kohl's

The future success of Kohl's hinges on several key entities and strategic focus areas:

1. CEO Tom Kingsbury: His leadership is driving the aggressive turnaround plan, focusing on cost-cutting and strategic investments.
2. Sephora Partnership: The in-store beauty shops are a crucial traffic driver and a differentiator in the competitive department store market.
3. Private Label Brands: A renewed focus on exclusive, high-margin private label brands is central to the profitability strategy.
4. Digital and E-commerce: Continuous investment in the online platform is essential to meet the demands of the modern consumer.
5. Small-Format Stores: These new, smaller locations are key to expanding market reach without the high overhead of traditional stores.

In conclusion, while the announcement of 27 Kohl's store closings by April 2025 is a difficult moment for the affected communities and employees, it is a calculated, necessary step in the retailer's long-term strategy. It is not a sign of collapse but a painful restructuring to ensure the health of the remaining 1,100+ locations. By shedding underperforming assets and reinvesting in a modern, omnichannel experience centered around concepts like Sephora and smaller store formats, Kohl's aims to solidify its position in the highly competitive American retail landscape for years to come.