Kohl’s Faces Challenges Amid Declining Sales, Looks to Revamp Strategy
Once celebrated as a standout in the retail sector, Kohl’s now finds itself grappling with declining sales figures. The department store’s recent financial results highlight a challenging period, with the CEO acknowledging the need for urgent action.
In a notable shift from its position as a “winner of the retail apocalypse,” Kohl’s experienced an 8.8% drop in net sales during the third quarter, while comparable sales dipped by 9.3%.
Addressing the company’s performance, CEO Tom Kingsbury conceded, “We are not satisfied with our performance in 2024 and are taking aggressive action to reverse the sales declines.” Kingsbury has announced his departure, effective January 15, to be succeeded by Ashley Buchanan, currently serving as a board member and CEO of Michael’s.
As part of its strategic overhaul, Kohl’s plans to shutter 27 underperforming stores by April, aligning with its broader “long-term growth strategy.” The company is also turning to its partnership with Sephora, evident in store layouts, to rejuvenate sales.
During a visit to a Kohl’s location in New Jersey, observations revealed the store’s emphasis on integrating Sephora offerings, particularly during the bustling holiday season.
Despite efforts to gather further insights, Kohl’s representatives were unavailable for comment.
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