Kohl’s is set to close 27 underperforming stores in 13 states as part of a strategy to boost profitability. This move, which will be completed by April, impacts a small fraction of Kohl’s 1,150 locations. Despite the closures, the company remains optimistic about the performance of its other stores.

The decision comes as CEO Tom Kingsbury prepares to step down, with Ashley Buchanan from Michaels named as his successor. Kingsbury will assist in the transition until May. Founded in 1962, Kohl’s offers a variety of products including clothing, footwear, and home goods.

Facing challenges from changing shopping habits and competition from e-commerce, Kohl’s has seen a 40% drop in stock value. In response, it has updated store layouts, expanded product ranges, and strengthened its online presence. Sustainability and social responsibility efforts are also part of the company’s strategy.

Closed locations include stores in Alabama, Arkansas, California, Colorado, Georgia, Illinois, Massachusetts, Ohio, Texas, and Virginia.