[A New CEO Takes the Reins at Kohl’s to Reverse a Long Losing Streak
A new CEO, Ashley Buchanan, has taken the reins at Kohl’s this month, tasked with reversing a long losing streak at America’s largest department store chain. The company has seen a sharp drop in stock value and waning customer trust, and reversing this trend will be a challenging task.
Kohl’s decline is part of a broader retail industry trend, with competition from online sellers, high inflation, and the lingering effects of the COVID-19 pandemic contributing to the struggles of many retail players. The previous CEO, Tom Kingsbury, made changes such as downsizing private-label brands, petite clothing sizes, and fine jewelry departments, replacing them with Sephora cosmetics and Babies “R” Us shops, which alienated long-time customers who valued Kohl’s for its quality clothes at reasonable prices.
Kohl’s sales have declined for 11 consecutive quarters, and its stock value has dropped nearly 50% over the past year. Kingsbury failed to connect with the younger generation and disconnected from the company’s core customer, said Jean-Pierre Dubé, a research associate at the National Bureau of Economic Research and marketing professor at the University of Chicago Booth School of Business.
The company’s difficulties are not unique, with more than 7,300 retail stores closing last year, a 57% increase from 2023. High inflation has reduced disposable income, and many consumers have turned to discount department stores like Walmart, where they can find better deals.
For Kohl’s to succeed, it needs to chart a new path forward, focusing on making its stores more appealing and its offerings more attractive. “The time is right to kind of re-discover what their unique position is,” said Deb Gabor, a branding expert and bestselling author. “Once customers leave, they find other alternatives that they’re happy with… a lot of it, they’re going to just lose forever.”
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