This will be Kohl’s third CEO since 2018. With effect from January 15, Tom Kingsbury, the present CEO of the off-mall department store, will step down. He will first resign from his job temporarily, beginning in late 2022, and then permanently, beginning in early 2023.
Ashley Buchanan, the CEO of Michaels, who has been in charge of the craft store since 2020, will succeed Kingsbury as Kohl’s CEO. Buchanan spent 13 years with Walmart and its Sam’s Club subsidiary before joining Michaels.
Following the announcement, Kohl’s shares dropped almost 3% during extended trade.
Prior to that, he was the top merchant at Sam’s Club and the chief merchandising and operations officer for Walmart U.S. e-commerce at the biggest retailer in the world. Buchanan will be leaving his position as a member of the Macy’s board.
Kingsbury will continue to serve on the board and advise Buchanan at Kohl’s until his retirement in May. Kohl’s will add one seat to the board and has no plans to replace Kingsbury.
As the retailer concludes its fiscal year and shortly after the important holidays, Buchanan will take over. Department shops are having a hard time connecting with consumers who have more alternatives than ever before, so there is still a lot of work to be done. Despite being somewhat better protected than other department shops due to its off-mall physical location, Kohl’s has had a challenging few years.
From December 2, 2022, to February 2, 2023, Kohl’s shares lost 17% during Kingsbury’s interim period. Since then, they have fallen another 45%. Kingsbury has failed to bring Kohl’s sales back to growth. For the last ten quarters, its comparable store sales—a crucial indicator for retailers—have decreased.
Michelle Gass departed Kohl’s to become president and later CEO of Levi Strauss, and Kingsbury took over as CEO. Since 2021, Kingsbury has been on the Kohl’s board. From 2008 until 2019, he was the CEO of Burlington Stores.
