For the third time since 2018, Kohl’s is getting a new CEO.
With effect from January 15, Tom Kingsbury, the present CEO of the off-mall department store, will step down. He will first resign from his position temporarily, beginning in late 2022, and then permanently, beginning in early 2023.
Ashley Buchanan, the CEO of Michaels, who has been in charge of the craft store since 2020, will succeed Kingsbury as Kohl’s CEO. Buchanan spent 13 years with Walmart and its Sam’s Club division before joining Michaels.
In the prolonged trade that followed the announcement, Kohl’s shares dropped almost 3%.
Prior to that, he was the chief merchant at Sam’s Club and the chief merchandising and operations officer for Walmart U.S. e-commerce, the largest retailer in the world. Buchanan will be leaving his position as a member of the Macy’s board.
Until his retirement in May, Kingsbury will continue to serve on the board and serve as an advisor to Buchanan at Kohl’s. Kohl’s will cut the number of seats on the board by one and has no plans to replace Kingsbury.
As the retailer concludes its fiscal year and shortly after the important holidays, Buchanan will take over. Department shops are having a hard time connecting with consumers who have more options than ever before, so there is still a lot of work to be done. Despite being somewhat better protected than other department shops due to its off-mall physical location, Kohl’s has had a challenging few years.
During Kingsbury’s interim period from December 2, 2022, to February 2, 2023, Kohl’s shares fell 17%, and they have subsequently fallen another 45%. Kingsbury has failed to bring Kohl’s sales back to growth. For the last ten quarters, its comparable store sales—a crucial indicator for retailers—have decreased.
Michelle Gass departed Kohl’s to become president and later CEO of Levi Strauss, and Kingsbury took over as CEO. Since 2021, Kingsbury has been on the Kohl’s board. From 2008 to 2019, he was the CEO of Burlington Stores.
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