Dive Brief:
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Kohl’s board has unanimously decided to make permanent Michael Bender’s interim appointment as CEO following a “comprehensive search” by an external firm, the department store said Monday.
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Bender took over in May when Ashely Buchanan was fired from the post over conflicts of interest, after taking the job in January. Bender then was board chair, and remains on the board as a director.
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There’s been a lot of turnover at Kohl’s top spot. Buchanan took over from Tom Kingsbury, who had served since 2022 on both an interim and permanent basis. Kingsbury, previously a Kohl’s executive from years back, took over from Michelle Gass, who left for Levi’s.
Dive Insight:
After the turmoil caused by Buchanan’s tenure, it’s unsurprising that Kohl’s would stick with an executive who has had the job for six months and served on the board for six years, including a year as chair.
Bender has a wealth of retail experience elsewhere too, including as CEO of optical retailer Eyemart Express, as well as leadership roles at Walmart, Cardinal Health, Victoria’s Secret and PepsiCo. Acting as Kohl’s CEO in the last six months, he has driven short- and long-term strategy, including “progressively improving results,” and impacting the company’s culture for the better, Board Chair John Schlifske said in a statement.
But even as the choice brings stability and an opportunity to see Bender’s initiatives through, Kohl’s needs more than “a continuity CEO,” according to GlobalData Managing Director Neil Saunders, who said that the department store “has been one of the worst performers in retail.”
In its most recent quarter, Kohl’s net sales and comps fell and profits shrank, though executives said sales trends were improving as many of its initiatives — mostly ushered in by Kingsbury before his exit — begin to bear fruit. Kohl’s reports Q3 results on Tuesday. Following a rough 2024, some analysts warned that the retailer is relying too heavily on its Sephora partnership to the detriment of its own operation and that the partnership’s ability to shore up Kohl’s may be waning.
“What Kohl’s needs most of all is a shift in management attitude and focus, with a huge injection of discipline and determination to improve the business,” Saunders said in a Monday client note.
