Kohl’s Could See Potential Store Closures, With 10 Property Leases Set to Expire Before 2023

Kohl’s could be hit with some store closures in the not-so-distant future, according to a Tuesday report from credit rating business Morningstar. Morningstar analysts identified 10 Kohl’s properties with leases set to expire before fiscal year 2023. These properties total $328.2 million in allocated property balance. Morningstar also found that the highest concentration of lease rollover in the next decade will be in 2024, when 23 leases expire. While the analysts said they do not predict “a slew of store closures in the short term” they outlined the potential risk for certain stores in underperforming locations like malls or stores with upcoming lease expirations. “Unlike Macy’s and Nordstrom, which have been closing hundreds of underperforming stores over the past few years, Kohl’s large fleet of stores has remained relatively stable because the majority of its locations, roughly 95%, are outside of malls,” Morningstar analysts, led by VP Steven Jellinek, wrote in a note. “But that might change.” The forecast comes shortly after the Menomonee Falls, Wisconsin-based retailer reported a decrease in net sales and comparable sales in Q1. Net income came in flat compared to the same period last year at $14 million in the first quarter of 2022. Kohl’s also recently announced a plan to

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