Business

Kohl’s to close Pineville store

A customer carries a $99 television from the checkout at a Kohl's department store in Sherwood, Ark., on Nov. 27, 2014.
A customer carries a $99 television from the checkout at a Kohl's department store in Sherwood, Ark., on Nov. 27, 2014. AP

As part of a nationwide cost-saving effort, Kohl’s will close its store in Pineville. It is one of 18 underperforming locations that will shut its doors June 19.

The retailer said eligible employees at the affected stores will be offered the chance to work at a nearby Kohl’s, or can get a “competitive severance package.” The Kohl’s in Pineville is at 9579 South Blvd.

The stores that are closing represent less than 1 percent of total sales, Kohl’s said in a statement Thursday. In deciding which stores will close, the company reviewed several factors including other stores in each area, the rent and expenses associated with operating in the area and how each location is adapting to changing consumer habits.

Department store chains have scrambled to adjust as customers shop more online and scour for bargains. Macy’s, for example, said last year it will close up to 40 stores in early 2016. And under pressure from other large department stores and online retailers, Charlotte-based Belk last year sold itself to a private equity firm.

The department store made the announcement about the nationwide closures when it reported bleak earnings in February, but didn’t list the affected locations until Thursday. Kohl’s reported a 20 percent drop in fourth quarter profits and issued a weak full-year forecast.

Kohl’s also said Thursday it’s going to pilot seven new smaller format stores across the U.S. and open 12 Fila outlet stores – all an effort to drive sales. It wasn’t clear where the new stores will be.

Katherine Peralta: 704-358-5079, @katieperalta

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