The retail market is not going through its best moment in the United States. The reason? Inflation. This phenomenon affects all levels of society, from business owners to ordinary families, affecting their purchasing power and causing them to be able to buy fewer products.
In this voracious and fierce market where everything moves too fast is Kohl’s, the retail chain that has announced that it will close approximately 27 of its stores before April (in addition to the closure of its distribution centre in San Bernardino, California).
There are many people who have been surprised by this news, but for others it has not been an isolated case, since Bed Bath & Beyond, Macy’s and JCPenney, among others, have made similar decisions. Are we witnessing the decline of our country?
What is Kohl’s?
Kohl’s is a chain of retail stores that sell clothing, shoes, household products, cosmetics, and other items – there’s everything! It was founded in 1962 in Milwaukee and now has hundreds of stores across the country.
These stores are different from the rest because they have exclusive brands (like Nike and Lev’s) and their own brands that are only found in their stores, as well as having very affordable prices and constant discounts so that customers can save if they shop a lot at those stores. In addition, they have products of all kinds so that you can find everything you need there.
Why are they closing the stores?
The company was forced to send a statement about why they made this decision, and the main reason behind it is that sales have dropped and with this level of performance they cannot cope with their establishments, so, as they are trying to stay afloat, they have decided to concentrate on the stores that bring in the most goods and give a stop to those with lower performance.
Tom Kingsbury, CEO of Kohl’s, has made it clear that this measure is part of a restructuring strategy and not a goodbye: “We know that these decisions are difficult, but necessary to guarantee the sustainability of our company.”
There are currently more than 1,150 stores still in operation across the country, so 27 of them isn’t a lot in perspective.
What will happen to the workers?
Kohl’s has informed all of the company’s workers and associates affected by this error, and they have been offered severance pay and openings at other Kohl’s centres.
However, management knows that it is not an easy process and that they are doing everything they can to get back on track in the long term.
Which stores are closing?
- The 27 stores that are closing are the following:
- Alabama: Spanish Fort – 21000 Town Center Avenue.
- Arkansas: Little Rock West – 13909 Chenal Parkway.
- California: Balboa (San Diego), Encinitas, Fremont, Mountain View, Napa, Pleasanton, Sacramento, San Rafael, San Luis Obispo, Westchester.
- Colorado: Aurora.
- Georgia: Duluth.
- Idaho: Boise.
- Illinois: Plainfield, West Dundee.
- Massachusetts: Stoughton.
- New Jersey: East Windsor.
- Ohio: Blue Ash, Cincinnati.
- Oregon: Portland Gateway.
- Pennsylvania: Pottstown.
- Texas: North Dallas.
- Utah: Riverton.
- Virginia: Herndon, Williamsburg.
The closing of these stores does not mean that the company is going bankrupt, far from it, it means that they have to adjust to the current market and its constant changes. However, Kohl’s will continue to be available through its website to reach the places where it has had to close its doors. This will be a decisive point to know if they can keep riding the wave or close and leave the sea forever, we trust that they will be able to come back stronger, we love Kohl’s and its so huge variety!