Kohl's announced this week that it will be closing 18 stores as the company's outlook continues to dim along with other big box retailers.
According to the Milwaukee Journal Sentinel, the closing comes on the heels of Sears Holdings announcing earlier this year plans to accelerate the closures of 50 Sears and Kmart locations. Macy's announced in January that it will board up 40 stores — the same number J.C. Penney shuttered in 2015.
Kohl's said in a company statement Thursday that specific stores targeted for closing will be announced next month with the Wisconsin-based retailer expecting to save about $45 million with an annual depreciation savings of roughly $10 million.
"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," Kevin Mansell, Kohl's chairman and CEO, said in the statement.
"We are committed to leveraging our resources on our more productive assets. 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," he continued.
According to the Journal Sentinel, the company said Thursday that its revenues for the last three months ending on Jan. 30 came in at $6.39 billion, an increase of 0.8 percent from a year ago. Its net income, though, fell 20 percent to $296 million.
Kohl's currently has more than 1,100 stores in 49 states, the Journal Sentinel reported, estimating that between 80 and 100 people work at an average location.
Citi analyst Paul Lejuez told investors that Kohl's will likely remain challenged in turning things around financially.
"Kohl's enters 2016 with high inventory in what has been a highly promotional and competitive
retail sector," Lejuez said, according to CNBC. "We expect pressure on sales and margins to continue."