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Kohl's to close 18 stores

MENOMONEE FALLS, Wis. - Kohl's announced it will close 18 underperforming stores after the Menomonee Falls, Wisconsin-based retailer reported lower than expected overall sales.

The company did not say which stores will close but that it will make a decision by the end of March. Kevin Mansell, Kohl's chairman, president and CEO, said while the company saw a 4 percent increase in sales during the Christmas holiday, the gains were heavily offset by sluggish sales of cold-weather gear before the holiday sales began, and again in January. The closures are expected to generate annual savings of approximately $45 million and annual depreciation savings of approximately $10 million. Mansell said employees at the affected stores will be offered positions at a nearby Kohl's location or a competitive severance package. Kohl's board of directors also declared a quarterly cash dividend of 50 cents per share, an 11 percent increase over the prior period.

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