What: Kohl's announces the closure of 27 retail locations and its San Bernardino e-commerce fulfillment center, shifting to store-based order fulfillment while offering affected employees severance packages or opportunities to transfer.

Why it is important: These changes highlight the retail industry's shift toward integrated omnichannel operations, as companies streamline their physical footprint while maintaining customer service capabilities through existing store networks.

Kohl's has announced significant real estate changes for 2025, including the closure of its San Bernardino e-commerce fulfillment center (EFC) and 27 retail locations. The EFC, which has been operating since 2010, will cease operations in May when its lease expires, with the company transitioning to fulfill customer orders through its store network. The store closures, set to be completed by April, include ten locations in California and additional stores across states including New Jersey, Pennsylvania, and Texas. The company has informed all affected employees of these changes, providing options for either competitive severance packages or the opportunity to apply for other positions within Kohl's.

IADS Notes: Kohl's store closures reflect broader retail transformation trends. While the company has identified $2 billion in growth opportunities and seen success with initiatives like Sephora partnerships, the closure of 27 stores and its San Bernardino e-commerce facility indicates a shift toward store-based fulfillment. This restructuring aligns with the company's strategy to optimise operations while maintaining customer service capabilities.

Kohl’s is closing 27 stores by April