Kohl’s has revealed plans to shut down 27 stores across multiple U.S. states as part of an effort to improve its financial health. The closures, expected to be finalized by April, represent only a small fraction of its approximately 1,150 locations, with the company noting that most of its stores remain successful and continue to serve customers effectively.

The decision targets underperforming locations and is part of a broader strategy to focus resources on stronger, more profitable markets. Former CEO Tom Kingsbury described the move as challenging but necessary for long-term stability. Leadership will soon transition to Ashley Buchanan, who is set to take over as CEO, while Kingsbury will remain temporarily as an advisor.

Like many department store chains, Kohl’s has been navigating shifting consumer habits, with more shoppers turning to online retail and overall sales showing signs of decline. A softer-than-expected holiday season also added pressure on the company’s performance. These closures reflect a wider trend among retailers adapting to economic challenges and changing shopping behaviors.

Moving forward, Kohl’s plans to concentrate on its most profitable locations while continuing to upgrade stores and improve the overall shopping experience. By focusing on key markets and strengthening operations, the company aims to stay competitive and build a more sustainable future in an evolving retail landscape.