Kohl’s names Michael Bender CEO after turbulent year

Kohl’s announced today that Michael Bender, who previously served as interim CEO, has been appointed as the permanent chief executive as the department store aims to return to sales growth.

He becomes Kohl’s third CEO in the past three years. The transition is effective as of this past Sunday.

Bender, a member of Kohl’s board since July 2019, took on the role of interim CEO in May. He assumed the position after the dismissal of CEO Ashley Buchanan, who was terminated shortly into his tenure.

Kohl’s terminated Buchanan following an internal investigation that revealed his involvement in pursuing deals with a vendor with whom he had a personal relationship. The individual in question was Chandra Holt, a former retail executive romantically linked to Buchanan.

The leadership change at Kohl’s comes just ahead of the company’s fiscal third-quarter earnings report. In addition to the leadership shake-up, Kohl’s has been grappling with declining sales. In August, the company projected a 5% to 6% decline in net sales for the fiscal year.

Kohl’s has witnessed several shifts in leadership since former CEO Michelle Gass departed in 2022 to join Levi Strauss & Co., eventually succeeding then-CEO Chip Bergh. Tom Kingsbury, a board member at the time, assumed the role of interim CEO before being appointed permanent CEO.

Bender, 64, has held leadership positions at prominent retailers such as Victoria’s Secret, Walmart, and Eyemart Express. In addition to his CEO role, Bender will continue to serve on Kohl’s board.

In a press release, board chair John Schlifske stated that Kohl’s conducted an extensive search with an external firm for the new leader. He emphasized Bender’s suitability for the position based on his three decades of leadership experience in retail and consumer goods, along with his strong dedication to the Kohl’s brand.

Schlifske praised Bender’s performance as interim CEO, citing his positive impact on results, strategic direction, and organizational culture. In an interview with CNBC, Bender described Kohl’s turnaround as being in the “middle innings,” indicating there is still work to be done.

Bender highlighted the evolving consumer behavior, where customers seek quality products at compelling values. He noted that Kohl’s customers are looking for curated assortments that offer value and convenience.

Over the past five years, Kohl’s stock has declined by approximately 53%, but this year has seen a 12% increase.

— CNBC’s Courtney Reagan contributed to this report