Kohl's Explores New Store Openings in 2026 After Financial Recovery
Kohl's is considering the possibility of opening new stores in 2026, marking a significant shift after the retailer successfully turned around its financial outlook. CEO Michael Bender revealed this potential expansion during a recent call with analysts and investors, highlighting the company's renewed stability.
Current Store Performance and Strategy
Kohl's currently operates more than 1,100 stores across the United States, with Bender claiming that "well over 90 percent" are profitable. This strong performance comes after the company closed 27 underperforming locations across 15 states in early 2025, a move that helped streamline operations and improve financial health.
Despite the positive momentum, Bender emphasized that Kohl's is not planning any major store openings or closures in the immediate future. Instead, the focus remains on optimizing existing locations. "I would not anticipate any sort of grand plan of saying we're taking stores out or adding stores at this point," Bender stated, as reported by the Milwaukee Journal Sentinel. "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 store productivity going forward."
Financial Highlights and Challenges
The Wisconsin-based retailer recently reported stronger-than-expected earnings, driven by cost-cutting measures and tighter inventory management. In 2025, Kohl's posted a profit of $272 million, up from $186 million the previous year. Operating cash flow also saw a substantial increase, rising to $1.4 billion from $648 million in 2024.
However, sales have continued to face challenges. Net sales for the latest quarter fell approximately 3.9 percent, with comparable store sales dropping 2.8 percent. Revenue in 2025 declined about 4 percent, and sales for 2026 are projected to be flat or decline by roughly 2 percent. Despite these headwinds, company leaders are not planning another wave of store shutdowns, expecting the store count to remain largely stable in 2026 with potential new openings.
Customer-Centric Initiatives
To win back customers and drive growth, Kohl's is implementing several strategic initiatives. The retailer is doubling down on value by adding more low-priced merchandise, including a new "Deal Bar" at the front of stores. This feature offers rotating trendy gifts, seasonal items, and everyday essentials priced at $10 or less, aimed at enhancing the in-store shopping experience.
Bender emphasized the importance of product curation and store layout improvements. "Our customers count on us to actually have what they're looking for, whether it's online or in-store, particularly in-store," he said. "What we've been doing is curating the assortment to the point where we have the appropriate level of choice, and in many cases, that means reducing the choice offerings but going deeper on that."
Kohl's is also simplifying store layouts to make shopping quicker and easier, addressing both product availability and customer experience. "We got to get the product right because that's what ultimately people come for," Bender added. "Experience and all the other things wrapped around it are important, and we're working on that as well, but we got to get the product right. We'll continue to focus back on that space to get back to growth eventually."
Annual Reviews and Future Outlook
The company conducts annual reviews of its store portfolio and may relocate some locations as part of its optimization strategy. However, Bender confirmed that no major changes are planned at this time. With over 90 percent of stores profitable and a focus on productivity, Kohl's is positioning itself for potential expansion in 2026, building on its recent financial recovery and customer-focused initiatives.
