Kohl's incoming CEO Ashley Buchanan and current CEO Tom Kingsbury.
Courtesy: Michael | Cole
Cole A new CEO is appointed, the third since 2018.
The department store's current chief executive, Tom Kingsbury, will step down effective January 15. He will leave the position he held first on a temporary basis from late 2022, and then permanently from early 2023.
Michaels CEO Ashley Buchanan will take on the top job at Kohl's upon the departure of Kingsbury, after leading the craft retailer since 2020. Prior to his time at Michaels, Buchanan was at Walmart and its Sam's Club division for 13 years.
Kohl's shares fell nearly 3% in extended trading after the announcement.
At the world's largest retailer, he held the positions of President of Merchandising and Chief Operating Officer of E-Commerce at Walmart US and Chief Merchant at Sam's Club before that. Buchanan currently sits on Macy's board of directors, but will step down from that role.
Kingsbury will remain with Cole in an advisory role to Buchanan and will remain a member of the board of directors until his retirement in May. Kohl's does not intend to replace Kingsbury and will reduce the panel size by one seat.
Buchanan will step in just after the crucial holidays and as the retailer closes its fiscal year. There is a lot of work to be done as department stores struggle to resonate with shoppers who have more choices than ever. While Kohl's off-mall physical format has insulated it a little more than other department stores, it has had a tough several years.
Kohl's shares fell 17% during Kingsbury's interim period from Dec. 2, 2022, to Feb. 2, 2023 and have fallen another 45% since then. Kingsbury has been unable to return sales to growth at Kohl's. Comparable store sales, a key metric for retailers, have declined over the past 10 quarters.
Kingsbury took over the CEO role after Michelle Gass left Kohl's to become president and then CEO of Levi Strauss. Kingsbury has been on Kohl's board of directors since 2021. He previously served as CEO of Burlington Stores from 2008 to 2019.
