MENOMONEE FALLS, Wisc. — First Walmart, now this. Kohl’s announced Thursday its plans to close 18 underperforming stores this year.
The retailer announced the plan Thursday along with its fourth quarter results.
The company has not said which of its locations will be affected by the closures. The specific locations will be announced next month.
The company released a statement:
“Kohl’s continues to explore ways to enhance shareholder value through the optimization of its existing store portfolio. The closures are expected to generate annual SG&A savings of approximately $45 million and annual depreciation savings of approximately $10 million. The Company currently expects to incur approximately $150 – $170 million in charges as a result of these planned closures and the organizational realignment at the Company’s corporate offices which occurred earlier this month. The Company estimates that approximately $55 – $65 million of the charge will be recorded in the first quarter of 2016, with the remainder recorded in the second quarter.”