By Michael Specter
Kohl’s Corporation announced that CEO Tom Kingsbury will step down from his position on January 15, 2024. Kingsbury, who first took the role as interim CEO in late 2022, transitioned to a permanent position in early 2023. During his tenure, Kohl’s faced significant challenges in revitalizing its sales and reversing a downward trend in performance.
Ashley Buchanan, the current CEO of Michaels, the leading arts and crafts retailer, will take over as Kohl’s CEO following Kingsbury’s departure. Buchanan, who has successfully led Michaels since 2020, previously spent 13 years at Walmart, holding key roles in the company’s merchandising and e-commerce divisions, as well as serving as the chief merchant for Sam’s Club.
Kingsbury to Stay on in Advisory Role Until May 2024
While Buchanan takes over, Kingsbury will remain with Kohl’s in an advisory capacity. He will also continue to serve on the company’s board of directors until his retirement in May 2024. Kohl’s confirmed that it will not replace Kingsbury on the board and will reduce the board size by one seat as part of the transition.
Kohl’s Corporation announced that CEO Tom Kingsbury will step down from his position on January 15, 2024. Kingsbury, who first took the role as interim CEO in late 2022, transitioned to a permanent position in early 2023. During his tenure, Kohl’s faced significant challenges in revitalizing its sales and reversing a downward trend in performance.
Ashley Buchanan, the current CEO of Michaels, the leading arts and crafts retailer, will take over as Kohl’s CEO following Kingsbury’s departure. Buchanan, who has successfully led Michaels since 2020, previously spent 13 years at Walmart, holding key roles in the company’s merchandising and e-commerce divisions, as well as serving as the chief merchant for Sam’s Club.
Kingsbury to Stay on in Advisory Role Until May 2024
While Buchanan takes over, Kingsbury will remain with Kohl’s in an advisory capacity. He will also continue to serve on the company’s board of directors until his retirement in May 2024. Kohl’s confirmed that it will not replace Kingsbury on the board and will reduce the board size by one seat as part of the transition.
Kohl’s Faces Leadership and Performance Struggles
The leadership change comes at a critical juncture for Kohl’s, which has faced significant struggles in recent years. Despite its off-mall store format offering some insulation from broader retail industry trends, Kohl’s has seen a steep decline in performance. Since Kingsbury took on the interim CEO role in December 2022, the retailer’s shares fell by 17% and further dropped by 45% in the months that followed. The company has struggled to return to growth, with its comparable store sales falling for 10 consecutive quarters.
Buchanan’s Retail Experience to Guide Kohl’s Recovery
Buchanan, a seasoned executive with deep retail experience, will inherit Kohl’s leadership at a time when department stores, in general, are finding it harder to maintain consumer interest. Shoppers today have more choices than ever before, both online and in physical stores. Buchanan’s experience at Michaels, where she has helped navigate similar retail challenges, along with her time at Walmart, gives her a strong background to lead Kohl’s during this challenging period.
Impact of CEO Transition on Kohl’s Stock and Future Prospects
The announcement of the leadership change caused Kohl’s stock to drop approximately 3% in after-hours trading. However, with Buchanan set to take charge in the post-holiday period, Kohl’s faces a critical opportunity to reevaluate its strategies and address the ongoing difficulties in returning to profitable growth.
The company’s fiscal year is expected to close with an intense focus on navigating these challenges, as it continues to face competitive pressures and seeks to reestablish itself as a leader in the department store space.
Kohl’s has been working to reposition its brand and customer base, but it remains to be seen if Buchanan’s leadership can turn around the retailer’s fortunes in an increasingly competitive retail environment.
