MENOMONEE FALLS, WI – Kohl’s department store has announced it will be closing 18 “underperforming” stores to boost shareholder value. The 18 stores (which represents less than 1 percent of total sales) will be announced by the end of March, according to the company’s most recent shareholder report, delivered Feb. 25 from corporate headquarters in Wisconsin.
In addition to the 18 store closures, the company will:
- Pilot a new smaller format Kohl’s store, opening seven of these stores in various regions around the country
- Add two additional Off-Aisle pilot stores in Wisconsin
- Open 12 Fila outlet stores, which will mark Kohl’s first entry into the outlet space.
The store closures are expected to generate annual savings of approximately $45 million, and annual depreciation savings of approximately $10 million.
“We see exciting growth potential in the new stores and new formats that we are opening this year and are heavily investing in the health of our overall stores portfolio to continue to serve our current and future customers,” Kevin Mansell, Kohl’s chairman, president and chief executive officer, said.
“While the decision to close stores is a difficult one, we evaluated all of the elements that contribute to making a store successful, and we were thoughtful and strategic in our approach. We are committed to leveraging our resources on our more productive assets,” Mansell said.
Every affected store associate will be offered a position at a nearby Kohl’s location, or if they prefer, a competitive severance package, Mansell said.
Kohl’s in Hooksett was one more than 30 stores nationwide renovated in 2014.
There are11 Kohl’s locations in New Hampshire, including: Hooksett, Bedford, Nashua, Salem, Plaistow, Rochester, Seabrook, Tilton, Keene, West Lebanon and Newington.
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