Shoppers Are Still Abandoning Kohl’s, CEO Says—Here’s Why

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It’s a tough time out there for the retail industry. Amid economic uncertainty and changes in consumer behavior , even some of the most prominent players are feeling the pinch. While some are shutting down entirely , others are trying to reposition themselves and keep customers coming through the door. The latest example is Kohl’s, where shoppers are still abandoning the retailer.

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Kohl’s just posted a shaky outlook for the coming year.

On March 11, Kohl’s released its fourth-quarter earnings that showed the company was backsliding. The retailer said its sales had slipped from $5.71 billion to $5.18 billion compared to the same period the previous year, clarifying that the quarter was a week longer in 2023, CNBC reports. Overall, the company also saw its sales for 2024 decrease from $16.59 billion in 2023 to $15.89 billion last year.

However, there may be more difficult days to come in the year ahead. The company said it expected its overall revenue to fall anywhere between 5 and 7 percent, which beat out the analysts’ estimates of a 1.6 percent drop, per CNBC. The retailer specified that comparable sales would likely drop 4 to 6 percent, again beating out experts’ estimations of a 0.9 percent drop.

The company’s announcement sent Kohl’s stock price shares tumbling, dropping 24 percent yesterday following the news. This brings the total share price loss to just under two-thirds of what it was a year ago.

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Company leadership says it’s working to win back customers.

The latest news comes after a tumultuous and trying period for the big-name retailer. Most recently, the store saw its previous chief executive, Tom Kingsbury , announce his resignation just four days before Black Friday, ending his contract months earlier than planned.

The departure came in the wake of major changes to stores, including scaling back on its petite apparel business and pushing out its popular jewelry sections to make room for a new in-store partnership with makeup retailer Sephora. In a recent interview, current Kohl’s CEO Ashley Buchanan admitted the decisions may have alienated some customers.

“A lot of the issues were probably self-inflicted over many years of decisions,” he told CNBC. “We have a very loyal customer. When I toured stores, all I heard was how much they love Kohl’s. And what I realized is we’re kind of making it hard for them to love us.”

Kohl’s is planning some changes.

Despite the hardship, Kohl’s isn’t taking the latest news lying down. The store said it was planning to continue expanding its partnership with Sephora while refocusing on jewelry sales and intimate apparel, The Wall Street Journal reports. Leadership says it’s also planning a reorganization of its store layouts and including more brands in coupons and discounts.

Part of the new focus might be a worthwhile effort. According to Kohl’s CFO Jill Timm , comparable beauty cosmetic sales saw a 13 percent increase; she called stores “incredibly healthy” during the earnings report, providing a bit of a bright spot in the announcement.

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It will also be closing more than two dozen locations by April.

However, the retailer will still reduce its footprint due to its dismal numbers. Earlier this year, the company announced it would shutter 27 “underperforming” locations by the end of next month.

“While Kohl’s continues to believe in the health and strength of its profitable store base, these specific locations were underperforming stores,” the company said in a press release.

In total, stores will shutter in 15 states. California will lose the most out of the bunch, with a total of 10 closures.

The company also recently downsized its workforce, laying off 10 percent of its corporate office earlier this year, CNBC reports.

Big Lots Is Opening Remodeled Stores Next Month—Here’s Where

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If you’re confused about what’s going on with Big Lots , you’re definitely not alone. The discount retailer has been yo-yo-ing back and forth for several years about its closure plans. But here’s the latest: After being “saved” by liquidation firm Gordon Brothers Retail Partners in January, the plans suggested that between 500 and 600 of Big Lots’ remaining 870 locations would close. As for the remaining stores, they’re reportedly being remodeled, and these improved outposts will reopen in four waves, the first of which is set for April.

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It’s been a long road for Big Lots.

Big Lots first began closing stores in 2022 , but things really took a turn for the worst this past September when they filed for bankruptcy. There was a brief glimmer of hope when Nexus Capital entered the picture to buy the company, but that deal quickly fell through.

Then, just before the end of 2024, Gordon Brothers Retail Partners came in with another offer to buy Big Lots, and this one stuck. The deal stipulated that Gordon Brothers would sell off hundreds of store leases and transfer the remaining Big Lots locations and company assets to Variety Wholesalers, Inc.

Many Big Lots locations are still closing.

At the end of January , Gordon Brothers released its Phase I list of 496 Big Lots locations set to close, with the majority in Texas (72), New York (49), and Florida (44). “The new-to-market stores are primarily located in shopping centers across 47 states and range in size from 18,963 to 54,933 square feet,” Gordon Brothers wrote on their website at the time.

A week later, the list expanded by 150 additional locations in Phase 2 of the plan. As Best Life reported , we counted 544 total locations set to close, though other reports vary.

Stores on the chopping block have already commenced going-out-of-business sales. A banner on Big Lots’ website reads, “All Stores Closing! Final Days! Save Now 50%-80-% Off Entire Store.” A previous restructuring website has been taken down.

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Remaining Big Lots stores are being remodeled and reopened in four phases.

As for the lucky Big Lots stores that aren’t closing, Variety Wholesalers confirmed to Fast Company that they will reopen some of the roughly 200 stores that they acquired. This will happen in four phases between April and June.

Variety’s vice president of sales and marketing, Jeff King , told Fast Company that nine southern locations are currently being remodeled. They will have soft openings on April 10 with “new categories of merchandise.” The locations are:

• Mount Sterling, Kentucky
• Metairie, Louisiana
• Tupelo, Mississippi
• Pearl, Mississippi
• Asheboro, North Carolina
• Clarksville, Tennessee
• Gallatin , Tennessee
• Dickson, Tennessee
• Roanoke, Virginia