:max_bytes(150000):strip_icc()/GettyImages-2154486959-177d34e2faeb4f15bccf8c149f6a9da9.jpg "Kohl’s Turnaround Plan Includes More Bling, Broader Sizing—and a New CEO")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2154486959-177d34e2faeb4f15bccf8c149f6a9da9.jpg)
Key Takeaways
- Kohl’s appointed Michael Bender as CEO on Monday after Bender spent the past six months as interim CEO.
- The retailer is trying to regain its standing with long-time shoppers by focusing on private labels, jewelry and petite sizes.
Kohl’s new CEO is on a charm offensive, pursuing shoppers with private labels and jewelry.
Michael Bender on Monday secured the role full time after helping Kohl’s (KSS) regain some footing as its interim CEO. He steps into the big chair at the retail chain, which had begun to struggle—according to its last CEO, Ashley Buchanan—as it overlooked items that were popular with long-time customers and tried to appeal to a new audience. Buchanan developed a plan to revive the business, but was fired seven weeks later, leaving much of the implementation to Bender.
Despite the leadership shakeups, Kohl’s had some success with the plan, which calls for focusing more on jewelry, private labels and petite sizes. The company posted second-quarter results that surpassed expectations and raised its outlook in August.
Why This News Matters to Investors
Kohl’s is one of several retailers trying to win over consumers by offering them more value. Companies are cutting prices, and in some cases accepting smaller profit margins, as they try to entice consumers who have grown cautious with their spending.
“While we’re pleased by our recent progress, we’re deeply motivated to accelerate our transformation,” Bender said in a statement Monday.
Kohl’s shares were recently up 2%, putting them up 12% so far this year. Still, company shares have lost 8% in the past year and are trading for a fraction of what they sold for in 2022.
Kohl’s is adjusting its merchandise, emphasizing value and enhancing the in-store experience, Bender said on a conference call in August. The company is expanding its fashion and home goods lines and broadening the applicability of coupons, he said. Kohl’s is also adjusting store layouts and taking steps to avoid running out of sought-after items.
Reintroducing petite sizes and leaning into Kohl’s brands like Sonoma and Lauren Conrad has improved the company’s standing with women, Bender said in August. Adding impulse buys, bolstering fashion jewelry and experimenting with fine jewelry has also helped, he said.
Bender is slated to discuss Kohl’s third-quarter results with investors on Tuesday morning.
