Department store chain Kohl’s announced revenue results for 2015. The company reported sales of $19.2 billion in 2015, an increase of 1%. Net income was down 22% to $673 million.
Kohl’s operates 1,164 stores in 49 states.
In 2016, Kohl’s said it plans to close 18 underperforming stores, representing less than one percent of total sales. The specific locations will be announced by the end of March.
Also this year, 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
Off-Aisle is an off-price concept store that Kohl’s began testing last year similar to Nordstrom Rack, Saks Off 5th and Macy’s Backstage.
“We see exciting growth potential in the new stores and new formats that we are opening this year and are heavily investing in the health of our overall stores portfolio to continue to serve our current and future customers,” said Kohl’s President and CEO Kevin Mansell. “A vital component of our omnichannel approach is to clearly understand the evolving retail environment and ensure that we are well-positioned to leverage our resources on productive projects.”
“While the decision to close stores is a difficult one, we evaluated all of the elements that contribute to making a store successful, and we were thoughtful and strategic in our approach. We are committed to leveraging our resources on our more productive assets,” Mansell said.
“Importantly, we also wanted to provide the best options for our associates and are proud that every affected store associate will be offered a position at a nearby Kohl’s location, or if they prefer, a competitive severance package.”