Michaels CEO Ashley Buchanan is taking over as chief executive officer of Kohl’s, effective Jan. 15, the department store said Monday.
He will replace Kohl’s Chief Executive Officer Tom Kingsbury, who has led the company since December 2022, when then-CEO Michelle Gass left for Levi’s. Kingsbury was named permanent CEO in February 2023.
A year ago, Kingsbury said the struggling department store would shift its focus back to its stores, but the company continued to struggle all year. In its most recent quarter, net sales fell 4.2% year over year to $3.5 billion, as comparable sales fell 5.1%, though profits and margins were up thanks in part to a tight grip on expenses.
Kingsbury will stay on to advise Buchanan and keep his spot on Kohl's board until he retires in May next year. At that point, the company will reduce its board size by one member, according to a company press release.
In a statement, Kohl’s Board Chair Michael Bender said that Kohl’s is in the midst of an overhaul of its merchandising, store experience and expense control thanks to Kingsbury. But, “despite his talents and experience,” his tenure hasn’t been a success, according to GlobalData Managing Director Neil Saunders.
“He tried to turn things around, but our impression is that Kohl’s talked a much better game than it played,” Saunders said in emailed comments. “The net result has been a continued decline in market share and the loss of an extensive number of customers. Deep problems remain in terms of merchandising, assortments, and the general proposition.”
Buchanan has been CEO of Michaels Companies since 2020 and in a 13-year career at Walmart held various executive roles, including chief merchandising and chief operating officer for Walmart U.S. e-commerce. This experience will “bring a steady, proven, innovative leader to Kohl's as we continue to transform the business and drive future growth,” Bender said.
Indeed, Kohl’s struggles are now on Buchanan’s plate.
“While he brings some good operational experience, we are somewhat concerned that he does not have deeper expertise in fashion – which is the main arena where Kohl’s needs to course correct,” Saunders said. “That said, he will bring some fresh thinking which is desperately needed.”
