Kohl’s Corporation said it would see Tom Kingsbury step down as its CEO effective January 15, 2024, and announce Ashley Buchanan as his replacement. Buchanan currently serves as Michaels’ CEO. During his tenure at Michaels since 2020, he acquired experience from his work at Walmart and its Sam’s Club division, where he provided senior level services for 13 years.
Kingsbury, who became CEO provisionally in late 2022, fully assumed the role early in 2023. Even though he has thrown all his efforts into reviving Kohl’s fortunes, this is proving difficult, especially in terms of regaining growth since consumer preference tends to move away from departmental stores. In the tenure of Kohl’s with Kingsbury, the company has been registering diminishing sales and witnessed an incredible 17% decline of shares during his caretaker period between December 2022 and February 2023. Since the permanent appointment, the stock has declined further by 45%. More disappointingly, the company has shown 10 consecutive quarters of weaker comparable store sales, making it an arduous journey for Kohl’s to revitalize their performance.
As part of the transition of leaders, Kingsbury is to remain with Kohl’s in an advisory capacity to help Buchanan and sit on the company’s board until such a time as he retires in May 2024. Kohl’s has indicated it will not be replacing Kingsbury with another member on the board, which is to reduce in size by one seat.
Appointment timing for Buchanan couldn’t be worse for Kohl’s. The retailer enters a post-holiday season and is closing out the fiscal year. Kohl’s off-mall store format has provided some insulation from more general weaknesses throughout the department store industry, but the company is under increasing pressure to re-establish a connection with shoppers as online competition builds and so does competition from the off-price guys.
Buchanan’s experience at Michaels and Walmart’s e-commerce and merchandising divisions will be the foundation used to navigate issues facing Kohl’s. His leadership is precisely what the company needs in order to stabilize its position in a rapidly changing retail environment.
