Kohl's gets a brand new CEO, the third since 2018.
The off-mall department store's current CEO, Tom Kingsbury, is stepping down effective January 15. He will leave the position he initially held temporarily from the top of 2022 after which permanently from the start of 2023.
Michaels CEO Ashley Buchanan will take the highest job at Kohl's with Kingsbury's departure after leading the humanities and crafts retailer since 2020. Prior to Michaels, Buchanan worked at Walmart and the Sam's Club division for 13 years.
Kohl's shares fell about 3% in prolonged trading following the announcement.
He previously served as Chief Merchandising and Chief Operating Officer for Walmart US E-Commerce on the world's largest retailer and as Chief Merchant at Sam's Club. Buchanan currently serves on the board of Macy's but will step down from that position.
Kingsbury will remain at Kohl in an advisory role to Buchanan and can remain on the board until he retires in May. Kohl's doesn’t plan to interchange Kingsbury and can reduce its board size by one seat.
Buchanan will step in immediately following the top of the main holiday season and on the close of the retailer's fiscal 12 months. At a time when shops are struggling to appeal to shoppers who’ve more options than ever before, there's plenty of work to be done. While Kohl's physical off-mall format has made it a bit of more insulated than other shops, it has had a difficult few years.
Kohl's shares, meanwhile, fell 17% from Kingsbury between December 2, 2022 and February 2, 2023, and have fallen one other 45% since then. Kingsbury has didn’t get sales at Kohl's back on course for growth. Comparable store sales, a key metric for retailers, have declined over the past decade.
Kingsbury took over as CEO after Michelle Gass left Kohl's to develop into president and eventually CEO of Levi Strauss. Kingsbury has served on the Kohl's board since 2021. He previously served as CEO of Burlington Stores from 2008 to 2019.
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