Kohl’s is set to appoint Ashley Buchanan as its new CEO, effective January 15, 2024. This change comes as current CEO Tom Kingsbury steps down after a challenging tenure that began in late 2022. Buchanan, who has led Michaels since 2020, brings extensive retail experience from Walmart and Sam’s Club.
- Kohl's appoints new CEO Ashley Buchanan.
- Tom Kingsbury steps down effective Jan. 15.
- Buchanan previously led Michaels since 2020.
- Kohl's shares fell 3% post-announcement.
- Kingsbury remains in advisory role until May.
- Comparable store sales declined for 10 quarters.
Tom Kingsbury’s departure marks the third CEO change for Kohl’s since 2018, reflecting ongoing struggles in the retail sector. Under Kingsbury’s leadership, Kohl’s faced a 17% drop in stock during his interim period and a further 45% decline since then. Comparable store sales have fallen for the last ten quarters, indicating persistent challenges in attracting shoppers.
Ashley Buchanan, who will take over the role, has a robust background in retail. He has served as CEO of Michaels and held various leadership positions at Walmart, including chief merchandising and chief operating officer for U.S. e-commerce. He is also a board member at Macy’s but will resign from that position to focus on his new role at Kohl’s.
- Kohl’s shares fell approximately 3% in after-hours trading following the announcement.
- Kingsbury will remain in an advisory role until his retirement in May 2024.
- The Kohl’s board will not replace Kingsbury and will reduce its size by one seat.
Buchanan’s appointment comes at a critical time as Kohl’s prepares to close its fiscal year and navigate the post-holiday retail landscape. The company has struggled to resonate with consumers amid increasing competition from various retail formats. With Buchanan at the helm, Kohl’s aims to address these challenges and revitalize its sales strategy.
In summary, Ashley Buchanan’s appointment as CEO is a strategic move for Kohl’s as the company seeks to recover from declining sales and stock performance. With his extensive retail experience, Buchanan is expected to lead the company through a critical transition period.
