Kohl’s is set to undergo a leadership change as its CEO Tom Kingsbury steps down on January 15, 2024
Kingsbury, who took on the role on an interim basis in late 2022 and permanently in early 2023, will be succeeded by Michaels CEO Ashley Buchanan.
This marks the third CEO transition for Kohl’s since 2018.
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Ashley Buchanan Takes the Helm
Buchanan, who has led crafting retailer Michaels since 2020, will assume the role of CEO at Kohl’s.
Buchanan’s background includes a 13-year tenure at Walmart, where he held senior positions such as chief merchandising and chief operating officer for Walmart U.S. e-commerce and chief merchant at Sam’s Club.
He currently serves on Macy’s board but plans to step down from that role.
Buchanan’s transition comes at a critical time for Kohl’s, as he will step in just after the holiday season concludes and the retailer wraps up its fiscal year.
The department store sector faces mounting challenges, with shifting consumer preferences and intensifying competition from various retail formats.
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Kingsbury’s Legacy
Tom Kingsbury’s tenure at Kohl’s has been marked by financial difficulties.
Since his interim leadership began in December 2022, the company’s shares fell 17 percent by February 2023 and have declined an additional 45 percent since then.
Despite efforts, Kingsbury was unable to reverse a 10-quarter streak of declining comparable store sales.
Kingsbury joined Kohl’s board in 2021 after serving as CEO of Burlington Stores from 2008 to 2019.
He stepped in as CEO following the departure of Michelle Gass, who left Kohl’s to join Levi Strauss as president and eventual CEO.
Kingsbury will remain at Kohl’s in an advisory capacity to Buchanan and stay on the board until his retirement in May. Kohl’s plans to reduce its board size by one seat following Kingsbury’s exit.
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Challenges Ahead for Buchanan
Buchanan’s appointment comes as Kohl’s navigates an increasingly challenging retail environment.
While the company’s off-mall store format has provided some insulation compared to traditional department stores, sales have continued to decline.
Buchanan will need to address the retailer’s ongoing struggles to resonate with shoppers and return the company to growth.
Kohl’s shares fell approximately 3 percent in extended trading following the announcement, reflecting investor concerns about the company’s future under new leadership.
As Buchanan takes the reins, his leadership and strategic vision will be closely watched in an effort to stabilize and rejuvenate Kohl’s performance.
