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Kohl’s Rules Out Major Store Closures or Openings in 2026 to Focus on Optimization

CEO Michael Bender cites profitability at over 90% of roughly 1,150 locations to justify an optimization pivot.

Overview

  • Executives said the retailer will keep its footprint largely stable this year, emphasizing productivity gains at existing stores after last year’s downsizing.
  • Kohl’s operates about 1,150 locations, with well over 90% profitable, and will continue annual reviews with potential relocations on a case‑by‑case basis.
  • The company closed 27 underperforming stores in 2025 across 15 states and shuttered its San Bernardino e‑commerce fulfillment center.
  • Full‑year 2025 profit rose to $272 million with $1.4 billion in operating cash flow, while net sales fell 4% and comparable sales declined roughly 3%.
  • Management is leaning into value and convenience with a Deal Bar featuring items at $10 or less, simplified layouts, and assortment moves such as MAC in 850 Sephora at Kohl’s, as shares fall over 41% year to date and 2026 sales are projected from flat to 2% lower.