Kohl’s on Monday named retail veteran Michael Bender as its permanent CEO, tasking an insider to lead a turnaround after years of sliding sales and shrinking profit amid churn at the top.
Bender, appointed interim chief in May after Kohl’s fired former CEO Ashley Buchanan, will have to reverse several quarters of declining sales as the department-store operator struggled with strategic missteps and intense competition from online and off-price retailers.
Shares of the company, which have more than doubled since Bender took on the interim CEO role, were last down about 1% in volatile trading. The stock was part of the so-called meme stock euphoria in July.
Bender has already accelerated his predecessor’s efforts to pull in budget-conscious shoppers by sharpening the focus on private-label brands, discounts and key assortments.
“The most pressing priority is to win back customers and spend… by simplifying the offer and injecting more fashion and oomph into the assortment,” said Neil Saunders, managing director of retail at GlobalData.
The company, due to report its third-quarter results before the bell on Tuesday, has introduced fresher items to keep its lower and middle-income customers engaged at a time when tariffs and still-high inflation have squeezed budgets.
Board Chair John Schlifske said the decision was made after engaging an external firm for a “comprehensive search.”
Bender, the fourth full-time CEO in three years, has also doubled down on leveraging the company’s partnerships with Sephora and Babies “R” Us, as well as streamlining its operations through store closures and job cuts.
In the first full quarter under him, Kohl’s lifted its annual profit targets as it beat market expectations.
Some skepticism remains
Market-watchers are cautious given the company’s earlier inconsistent strategy execution.
“Kohl’s problems are so deep that it’s unclear what, if anything, Bender can do about them,” Morningstar analyst David Swartz said.
“It would have been better if Kohl’s could have recruited someone from the outside.”
Bender, who has been on the company’s board since 2019, has more than 30 years of experience at retailers including Victoria’s Secret, PepsiCo and Walmart, where he was the chief operating officer of global ecommerce.
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