Full Breakdown
Kohl’s CEO Michael Bender Addresses Store Closures Amid Sales Decline
3/19/2026, 9:14:51 AM
Overview of Recent Store Closures
Kohl’s CEO Michael Bender has assured customers and employees that there will not be significant store closures in the near future, following a challenging year for the retailer. In 2025, Kohl’s closed 27 stores across 15 states and an e-commerce fulfillment center in California, a move described by then-CEO Tom Kingsbury as essential for the company’s sustainability. Bender, who took over leadership in November 2025, emphasized that over 90% of Kohl’s approximately 1,150 locations remain profitable.
Strategic Focus on Optimization
During a recent post-earnings call, Bender addressed investor concerns regarding potential further closures, stating, “I would not anticipate any sort of grand plan of saying we’re taking stores out or adding stores at this point.” Instead, he highlighted a strategy focused on optimizing existing stores and enhancing their productivity. This approach comes as Kohl’s faces ongoing challenges from e-commerce competitors such as Amazon, Temu, and Shein, which have contributed to a decline in sales.
Financial Performance and Market Response
Kohl’s has experienced a notable drop in same-store sales, which fell by 2.8% in the most recent quarter and 3.1% over the entire fiscal year 2025. Despite these declines, the company reported earnings per share of $1.07, surpassing Wall Street expectations of 86 cents. However, Kohl’s stock has seen a significant decline of over 37% in 2026, closing at $12.69 recently.
Leadership Changes and Strategic Initiatives
Bender's appointment as CEO followed the dismissal of Ashley Buchanan, who was removed due to undisclosed conflicts of interest related to a personal relationship. Since taking the helm, Bender has initiated efforts to attract budget-conscious consumers by enhancing private-label offerings, increasing discounts, and introducing new products. Additionally, he is working to streamline partnerships with brands like Sephora and Babies “R” Us to improve the overall shopping experience.
Criticism & Opposition
While Bender's strategies aim to stabilize the company, critics argue that the focus on store optimization may not be sufficient to counteract the broader trends affecting department stores. The competitive landscape, particularly from online retailers, poses a significant challenge that some analysts believe requires more aggressive innovation and adaptation.
Verbatim Quotes
- “The focus for us is actually on optimizing what we already have, and we’ll be focused on making sure that we continue to push the store’s productivity as far as we can going forward,” — Michael Bender, CEO of Kohl’s
- “would not anticipate any sort of grand plan of saying we’re taking stores out or adding stores at this point.” — Michael Bender, CEO of Kohl’s
As Kohl’s navigates these challenges, the effectiveness of Bender’s strategies will be closely monitored by investors and industry analysts alike.
