Kohl’s is getting a new chief executive officer. Now many are wondering whether the leadership shakeup will help the declining retailer.
Kohl’s is a department store that sells a range of merchandise, including clothes, shoes, toys, home goods, and beauty products. The 62-year-old retailer is known for its affordability, rewards program, and being a one-stop shop for families.
In recent years the chain has tried to push its profits and foot traffic up through partnerships with Amazon and Sephora. These partnerships haven’t been enough; Forbes reports that its sales have declined for 11 straight quarters.
Kohl’s CEO steps down
In a TikTok with more than 440,000 views, a news aficionado who goes by @doesthismattertome shares that Kohl’s CEO recently resigned.
“Ran away from his job in the cover of darkness,” @doesthismattertome claims of outgoing CEO Tom Kingsbury.
Kingsbury isn’t leaving overnight, however. Instead, his last official day is on Jan. 15, CNN Business reports. He will stay on in an advisory role and remain on the board until he retires next May.
Kingsbury will be replaced by Ashley Buchanan, CEO of popular craft store Michaels. Buchanan was also formerly a senior executive at Walmart.
@doesthismattertome adds that the Kohl’s stock is down about 20% while sales are down about 10% which has led some to wonder if the company reverse such a steep decline
“Let’s be honest, I kinda get it. Any clothing store that I as a 44-year-old white guy from the Midwest feels comfortable going into is likely in decline,” @doesthismattertome says.
He notes that Kohl’s feels like Sears circa the 90s “and that’s not a good thing.”
Sears, once a retail giant went with more than 700 brick-and-mortar stores, has shrunk to just a spattering of 25 or less.
“Kohl’s isn’t long for this world,” @doesthismattertome posits.
On the decline
In a recent earnings update, Kingsbury said that they had growth in key areas like Sephora, home decor, gifting, and impulse, and Babies ’R’ Us shops. But it wasn’t enough to “offset the declines in our core businesses.”
The retailer made $37 million less in the quarter that ended Nov. 2 compared to the same quarter last year.
“We are not satisfied with our performance in 2024 and are taking aggressive action to reverse the sales declines,” Kingsbury added.
Why is Kohl’s failing?
“Kohls has 80% off on everything and still to expensive!! That business plan isn’t working anymore!!!” a top comment reads.
“I only go to Kohl’s to return Amazon packages,” another a person said.
@doesthismattertome Kohl’s CEO noped out in the middle of the night, and honestly, I get it. 11 quarters of declining sales, stock down 20%, and a vibe that screams ‘Sears, 90s edition.’ If a middle-aged Midwestern dad like me feels at home there, it’s probably doomed. #RetailDecline #Kohls #MiddleClassCrisis ♬ original sound – doesthismattertome
“When my kids were little it was awesome. Now coupons don’t work on hardly anything. Everything else before coupons is outrageously marked up. My local Kohls is closing in Jan,” added a third.
The Daily Dot reached out to @doesthismattertome for comment via TikTok direct message and comment and to Kohl’s via email.
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