2025 starts with more retail closures: Macy's and Kohl's announced nearly 100 stores will close across the country

The bad era of closures for retail stores seems not to have stayed in 2024. This year kicks off with significant restructuring for two giants: Macy's and Kohl's. The chains announced massive store closures that will impact nearly half the states in the country.

Eliminating underperforming stores

Macy's Inc. will close 66 stores in 22 states as part of its strategic plan called "A Bold New Chapter," launched in February 2024. This initiative seeks to eliminate underperforming stores to focus resources on more profitable locations. Clearance sales at affected stores will begin in January and last between 8 and 12 weeks.

Tony Spring, president and CEO of Macy's, said these decisions are critical to strengthening the company, "We are focusing on our stores of the future, where customers are already responding positively."

These closures are part of a three-year plan that projects the closure of 150 underperforming stores. Macy's also plans to strengthen its presence in 350 locations considered to be key. Ohio and Pennsylvania will be among the hardest-hit states.

Kohl's closures in California 

FKohl's will close 27 underperforming stores by April 2025, in addition to its eCommerce Fulfillment Center in San Bernardino, Calif. Most of the closures will be concentrated in this state.

Kohl's offered severance packages or the possibility of relocation to other vacancies within the company. Tom Kingsbury, CEO of Kohl's, commented, "These difficult decisions are necessary to ensure the health and future of our business."