Kohl's incoming CEO Ashley Buchanan and current CEO Tom Kingsbury.
Courtesy: Michael's | Kohl's
Kohl's is getting a new CEO, its third since 2018.
The current CEO of the off-mall department store, Tom Kingsbury, will resign effective January 15. He will leave the position he held first on an interim basis from the end of 2022 and then permanently from the beginning of 2023.
Michaels CEO Ashley Buchanan will take the top job at Kohl's when Kingsbury leaves, after leading the craft retailer since 2020. Prior to her time at Michaels, Buchanan was at Walmart and its Sam's Club division for 13 years.
Kohl's shares fell about 3% in extended trading following the announcement.
At the world's largest retailer, he served as chief merchandising officer and chief operating officer for Walmart's U.S. e-commerce business and, before that, chief commercial officer at Sam's Club. Buchanan currently serves on Macy's board of directors, but will step down from that role.
Kingsbury will remain with Kohl's as an advisor to Buchanan and will remain on the board until he retires in May. Kohl's has no intention of replacing Kingsbury and will reduce the size of the board by one position.
Buchanan will step in just after the critical holidays end and as the retailer closes its fiscal year. There's a lot of work to do at a time when department stores are struggling to reach shoppers who have more choices than ever. While Kohl's off-mall physical format has isolated it a bit more than other department stores, it has had several tough years.
Kohl's shares fell 17% during Kingsbury's interim period from December 2, 2022 to February 2, 2023 and then fell another 45% since then. Kingsbury hasn't been able to get sales growing again at Kohl's. Its comparable store sales, a key metric for retailers, have fallen over the past 10 quarters.
Kingsbury took over as CEO after Michelle Gass left Kohl's to become president and then CEO of Levi Strauss. Kingsbury had been a member of Kohl's board of directors since 2021. He previously served as CEO of Burlington Stores from 2008 to 2019.
