- Best Buy President and Chief Operating Officer Mike Mohan is stepping down from his post, effective July 1, according to a securities filing.
- The retailer said it does not plan to fill the COO role after Mohan departs. Instead it plans to distribute his responsibilities around Best Buy's executive leadership team.
- After leaving, Mohan is set to receive $1 million in cash in lieu of annual incentive compensation for the year.
Mohan started with Best Buy 17 years ago in 2004 as vice president of the digital imaging business group. He worked his way up to chief merchandising and marketing officer before becoming COO. In 2019, he took on the president title at the same time Corie Barrie became CEO after serving as the retailer's CFO and chief transformation officer.
Much has happened during the course of Mohan's career with Best Buy: the bankruptcy and liquidation of rival Circuit City, the rise of Amazon as a powerhouse in the electronics category, a broad shift among consumers to more online buying and less in-store shopping, an ambitious and mostly successful overhaul and turnaround of Best Buy's business, and a massively disruptive pandemic, to name a few.
Best Buy's transformation has been hailed as a model for the industry, as the retailer shifted resources to digital shopping and omnichannel fulfillment models while also beefing up its services to give customers a reason to spend with the company.
Before he became COO, Mohan oversaw the launch of thousands of store-within-a-store locations with tech vendors as well as the expansion of and development of Best Buy's private-label brands, and new categories such as fitness and smart home products, according to the company.
Under Mohan, Best Buy's operations underwent massive stress last year as COVID-19 began its spread through the U.S. In that environment, the company showed its strength as past investments paid off. The company posted strong performances throughout the year, with online sales growth in the triple digits, as it shifted to digital sales and omnichannel fulfillment options like curbside delivery.
In a note to staff obtained by the Minneapolis StarTribune, Barry said of Mohan: "As his friend, I was proud that he was ready to leave a company he loves and set out to pursue his desire to do more. As his colleague, I was truly saddened at the idea that I wouldn't be able to count on his advice and insights as I have for so long."
In the note cited by the StarTribune, Barry said vice presidents Rob Bass (supply chain and global properties), Damien Harmon (omnichannel operations) and Jason Bonfig (merchandising) will begin reporting directly to her with Mohan's exit.
Addressing Mohan's departure in a research note, analysts with Telsey Advisory Group anticipate Best Buy will continue as a "long-term winner" in the industry. "While Mr. Mohan's leadership at Best Buy will be missed, the company has a deep bench of strong executives to continue to lead and transform the company," the analysts said.