Incoming Kohl’s CEO Ashley Buchanan and current CEO Tom Kingsbury.
Courtesy: Michael’s | Kohl’s
Kohl’s It’s getting a new CEO, its third since 2018.
The off-site department store’s current chief executive, Tom Kingsbury, will resign on January 15. He will leave temporarily from the end of 2022 and then permanently from early 2023.
Michaels CEO Ashley Buchanan will take over the top job at Kohl’s following Kingsbury’s departure, having led the arts and crafts retailer since 2020. Prior to joining Michaels, Buchanan spent 13 years with Walmart and its Sam’s Club division.
After the news was announced, Kohl’s shares fell about 3% in after-hours trading.
Prior to that, he served as chief merchandising officer and chief operating officer at Walmart U.S. e-commerce, the world’s largest retailer, and chief merchant at Sam’s Club. Buchanan currently serves on Macy’s board of directors, but he will resign from that position.
Kingsbury will remain at Kohl’s as an adviser to Buchanan and remain on the board until his retirement in May. Cole is not intended to replace Kingsbury and will reduce the size of the board by one seat.
Buchanan will step in after the critical holiday season and after retailers close out their fiscal years. There’s a lot of work to be done as department stores struggle to resonate with shoppers who have more choices than ever before. Although Kohl’s’ off-site physical stores are more insulated from the outside world than other department stores, it has had a tough time in recent years.
Kohl’s shares fell 17% during Kingsbury’s interim period from December 2, 2022 to February 2, 2023, and have fallen an additional 45% since then. Kingsbury failed to get Kohl’s sales back up. Its comparable store sales, a key metric for retailers, have been declining for the past 10 quarters.
Kingsbury took over as CEO after Michelle Gass left Kohl’s to become president and eventually CEO of Levi Strauss. Kingsbury has been a member of the Kohl’s board of directors since 2021. He served as CEO of Burlington Stores from 2008 to 2019.
