Kohl’s has announced a transition at the top, naming a new CEO for 2025.

Current Kohl’s CEO Tom Kingsbury plans to step down on Jan. 15. Kingsbury will be replaced by Ashley Buchanan, who was hired as Kohl’s new chief executive officer and board member. Buchanan helmed the crafts chain Michaels for almost five years.

Before Michaels, Buchanan served for over a decade in various leadership roles at Walmart and Sam’s Club. Kingsbury, meanwhile, will remain with Kohl’s in an advisory capacity until he officially retires in May of 2025.

Kohl’s is No. 23 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers. Digital Commerce 360 categorizes Kohl’s as an Apparel & Accessories retailer. Digital Commerce 360 projects Kohl’s online sales will reach $5.40 billion in 2024.

Kohl’s ecommerce sales by year

Incoming Kohl’s CEO Ashley Buchanan

Kohl’s board chairman Michael Bender heralded the hiring of Buchanan, specifically citing his time at Michaels as positioning him well for Kohl’s.

“During his time at Michaels, he improved profitability and cash flow while driving operational efficiencies across the business,” Bender said in a released statement. “He also introduced new ways to leverage technology and e-commerce, allowing Michaels to more effectively meet customers where they are today.”

Bender also praised Kingsbury for his years of work at Kohl’s.

“Under his leadership, the company is undergoing a transformation to elevate its product portfolio, enhance the store experience and improve its long-term financial health and profitability,” Bender noted.

Kingsbury kept in place partnerships cultivated by his predecessor Michelle Gass, who now leads Levi Strauss. Partnerships were forged with known brands like Sephora and Babies R Us to build store-within-a-store concepts. But none of that has been enough to reverse Kohl’s sagging fortunes.

In Kohl’s most recent earnings report, net sales declined 8.8% year over year, following another decline in the previous quarter.

Turnaround challenges for next Kohl’s CEO

Retail experts are divided on whether Buchanan can turn the company around.

Tom South, who specializes in retail as director of organic and web at the point-of-sale-system Epos Now, told Digital Commerce 360 he believes reducing fine jewelry and petite clothing offerings alienated core customers at Kohl’s.

“To reverse these trends, Buchanan should prioritize reconnecting with Kohl’s traditional customer base,” South assessed.

He added that reinstating popular product lines and enhancing private-label offerings could address current inventory gaps.

“Additionally, refining partnerships, like the in-store Sephora shops, to complement rather than displace existing categories is crucial,” South stated.

He pointed to Buchanan’s track record in growing digital commerce at Michaels as an indicator that he could do the same for Kohl’s.

Customer experience at Kohl’s

Ellis Verdi, who is president and founder of the New York City-based ad agency DeVito/Verdi, as well as a former member of the board at the National Retail Federation‘s marketing arm, said Kohl’s started as an industry phenom. However, its ubiquitous discounts eventually lost their luster.

“Tools used in the discounting process have become stale,” Verdi said. “Initially, all these coupons made consumers perceive a casino mindset; they were taking advantage of the house when they shopped. Coupons made it feel as if it was you vs. the store, and you always felt as if you had won.”

Eventually, that feeling grew old after a while, according to Verdi, lacking an innovative replacement to keep the excitement alive in Kohl’s customer experience.

“The stores started to look less appealing,” Verdi said. “They started to look like factories.”

Verdi believes Buchanan will be challenged to deliver new excitement around the products and brands at Kohl’s, communicating at a higher level that the customer is always a winner. To do that, Verdi said, Buchanan will need to set the expectation that Kohl’s is a destination for deals.

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