Kohl’s terminated CEO Ashley Buchanan who started in January after an investigation showed he managed vendor transactions with undisclosed conflicts of interest. The company appointed Chairman Michael Bender as interim CEO starting immediately while conducting a search for a permanent CEO. The Wisconsin-based company based in Menomonee Falls stated Buchanan’s dismissal did not stem from his performance or financial reporting or other employee conduct.
Buchanan took over as CEO from Tom Kingsbury who will continue serving as board adviser until his retirement in May. The 1,600-store retailer Kohl’s faces declining sales because middle-income consumers reduce their discretionary spending because of high necessity costs and Walmart and Amazon competition. The tariffs imposed by President Trump create market uncertainty which may result in price increases. The company expects Q1 preliminary results to show a 4-4.3% decline in comparable sales and a 20-24 cent loss per share before releasing final results on May 29. The company’s stock price increased by 6.4% during morning trading because investors welcomed the new leadership direction.
The sudden departure demonstrates Kohl’s difficulties in navigating the challenging retail environment which requires fast and effective leadership to address both internal mistakes and outside pressures. The company’s current situation with Bender as interim CEO and an active CEO search indicates Kohl’s needs to stabilize its operations to recover market position.
