Thursday, Milwaukee based retail store Kohl’s announced it was closing 18 underperforming stores. The specific locations won’t be announced until the end of the March. There are two local Kohl’s locations– at 300 Spring Creek Drive, in Franklin and 1020 Crossings Blvd in Spring Hill.
Kohl’s has 1,164 stores in 49 states. The 18 stores, representing less than one percent of total sales. The closures are expected to generate annual SG&A savings of approximately $45 million and annual depreciation savings of approximately $10 million
Despite the closures, Kohl’s is looking at more innovative ways to drive sales. In 2016, Kohl’s plans to:
• Pilot a new smaller format Kohl’s store, opening 7 of these stores in various regions around the country
• Add 2 additional Off-Aisle pilot stores in Wisconsin
• Open 12 Fila outlet stores, which will mark Kohl’s first entry into the outlet space
CEO Kevin Mansell acknowledged these planned store closures represent what is likely the first time in the company’s 52-year history as a department store that it is closing multiple stores at a time. CFO Wes McDonald went on to say that Kohl’s has only shuttered about five locations since he joined in 2003, reports nbcnews.com.
Due to online shopping, Kohl’s is just one of many large retail stores who find themselves closing stores or, as in Kohl’s case, finding alternative ways to drive sales.
Here’s a look at some other national retail closings:
Walmart
Closing 154 stores, including Walmart Express, Walmart Supercenter, Walmart Neighborhood Markets, and Sam’s Club. Five Tennessee Walmart locations closed at the end of January.
Macy’s
Closing 36 stores. As of now, there are no stores closing in our area.
JCPenny
“JCPenney is expected to report a sales increase when it releases its fourth quarter results on Friday.But JCPenney is also closing stores. It recently announced plans to shut down 7 more this year — after closing 74 during the past two years,” reports CNN Money.
Office Depot/Office Max
Office Depot merged with Office Max in 2013. As a result, the new company planned to close 400 locations through 2016. The Office Max in Brentwood closed in April 2015.
The Gap
Gap will close about 175 specialty stores in North America over the next few years, with about 140 closures occurring this fiscal year. These changes will not impact Gap Outlet and Gap Factory Stores. In parallel with these moves, the brand will close a limited number of European stores during this period.
Aeropostale
Closing 84 stores all across America.
Kmart/Sears
(The Kmart chain purchased Sears for $11 billion in 2005).
The Kmart, which was located in the Watson Glen shopping center in Franklin, closed in March of 2014. Earlier this month, The AP reported that Sears will accelerate the closing of its stores.
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So basically this isn’t really a story.