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Kohl’s Closed 27 Stores in 2025. Experts Fear More Closures Amidst Fulfillment Center Shutdowns
Kohl's has had a rocky financial year.
Kohl’s is facing severe headwinds in 2025, and the signs are impossible to ignore. After shuttering 27 stores this year and announcing the closure of multiple e-commerce fulfillment centers, the question on many shoppers’ minds is whether more locations are next. As the retail landscape continues to shift away from traditional department stores, Kohl’s is trying to prove it can still survive — and thrive. But the numbers and the strategy behind them paint a more complicated picture.
Kohl’s Store Closures Signal Deeper Restructuring
At the start of the year, Kohl’s confirmed in a Jan. 9 press release that it would be closing 27 stores nationwide. The company emphasized that these closures represented less than 3% of its approximately 1,150 locations. While that number might seem small, it signals a larger restructuring effort that may just be beginning.
The closures followed a year of ongoing financial decline. Kohl’s has posted 12 consecutive fiscal quarters of decreasing sales and saw its stock price drop over 50% in 2024 alone. The company has also undergone executive changes, with interim CEO Michael Bender now leading the charge and trying to shift the narrative. Despite continued sales declines, Bender expressed optimism on the May 29 earnings call, highlighting improved gross margins and a long-term commitment to efficiency.
E-Commerce Fulfillment Centers Are Also on the Chopping Block
The retail shakeup isn’t limited to brick-and-mortar stores. Kohl’s is also making significant cuts to its logistics operations. In May 2025, the company shut down its e-commerce distribution center in San Bernardino, California, after its lease expired, per the same company press release announcing the 27 store closures. That was followed by an even larger blow earlier this week: the announced closure of its Monroe e-Fulfillment Center in Middletown, Ohio, per WCPO.
According to a Worker Adjustment and Retraining Notification (WARN) filed with the Ohio Department of Jobs and Family Services, the Middletown center — located at 3500 Salzman Road — will close permanently on Oct. 31. The move will affect more than 700 employees, including 664 material handlers and 33 e-fulfillment supervisors. Layoffs are set to begin on Sept. 12.
“This was a difficult decision, and one we did not take lightly,” Bender said in a statement. “Ultimately, it’s a necessary step to strengthen our operational discipline, drive greater cost efficiency, and ensure the long-term health of our business — for our customers, our associates, and the future of our company.”
Kohl’s Chief Financial Officer Jill Timm confirmed during the May earnings call that the company is now focusing on expanding its existing 900,000-square-foot fulfillment center in Plainfield, Indiana, a strategic move that consolidates operations and cuts costs.
Is Your Local Kohl’s at Risk?
Kohl’s insists it’s not abandoning brick-and-mortar retail. The company stated that it “continues to believe in the health and strength of its profitable store base.” However, the closures suggest a sharpened focus on profitability and a willingness to make tough decisions.
Former CEO Michelle Gass and current leadership have long sought ways to revitalize the brand, including store redesigns, partnerships with Sephora, and a renewed emphasis on private-label goods. But none of these changes have reversed the steady decline in sales. In fact, with consumer behavior shifting more rapidly toward e-commerce and off-price competitors, Kohl’s may be forced to re-evaluate its presence in certain regions altogether.
While no official list of future closures has been released, industry experts suggest that more underperforming stores could face the chopping block in late 2025 or early 2026 — especially in overlapping or oversaturated markets.
The Activist Pressure Hasn’t Gone Away
Behind the scenes, Kohl’s is still dealing with investor pressure. In 2022, activist investors pushed for radical changes, including selling off real estate assets, spinning off the digital arm, or even taking the company private. Those proposals were ultimately rejected, but the message was clear: shareholders want results.
Despite these challenges, Kohl’s has shown some signs of stabilizing, with a slight improvement in gross margins during Q1 of 2025. But stabilizing isn’t the same as growing, and the reality remains that Kohl’s is fighting to stay relevant in a retail sector where department stores are becoming increasingly obsolete.
What’s Next for Kohl’s?
With 27 stores and two warehouses already closed in 2025 — and more than 1,000 employees laid off — Kohl’s is clearly in a state of transition. Whether this strategy results in a long-term turnaround or continued contraction remains to be seen.
For now, Kohl’s leadership remains publicly optimistic. But the writing on the wall suggests that more closures could be on the horizon, especially as the company tries to balance shareholder expectations with the operational realities of 21st-century retail.
Shoppers who rely on Kohl’s for affordable fashion and home goods should stay informed and keep an eye on whether their local store could be next.
