In January, Kohl's CEO Tom Kingsbury will step down and be replaced by Michaels CEO Ashley Buchanan.

• On January 15th, Kohl's CEO Tom Kingsbury will resign and be succeeded by Michaels CEO Ashley Buchanan.
• Department stores are losing popularity among consumers, making it difficult for Kohl's to regain growth.
• Buchanan previously spent time at Walmart and its Sam's Club division.

is getting a new CEO, its third since 2018.

Tom Kingsbury, the current CEO of the off-mall department store, will step down effective January 15. He has been in the interim position since late 2022 and will leave it permanently in early 2023.

Ashley Buchanan, CEO of Michaels, will succeed Kingsbury as the head of Kohl's, having previously worked at Walmart and its Sam's Club division for 13 years.

Kohl's shares fell about 3% in extended trading following the announcement.

The individual held the positions of chief merchandising and chief operating officer for Walmart U.S. e-commerce and chief merchant at Sam's Club prior to his current role on the board of Macy's. However, he will be stepping down from that role.

Kohl's will retain Kingsbury in an advisory capacity to Buchanan and maintain his position on the board until his retirement in May. Kohl's has no plans to replace Kingsbury and will decrease the board size by one seat.

After the critical holidays end and as Kohl's closes its fiscal year, Buchanan will take over as CEO. Department stores are facing challenges in connecting with shoppers who have an abundance of options. Despite Kohl's off-mall physical format providing some protection, the company has been struggling in recent years.

During Kingsbury's interim period from Dec. 2, 2022 to Feb. 2, 2023, Kohl's shares fell 17%. Since then, they have dropped a further 45%. Despite Kingsbury's efforts, Kohl's hasn't been able to return sales to growth. Its comparable store sales, a key metric for retailers, have fallen for the past 10 quarters.

Michelle Gass left Kohl's to become president and CEO of Levi Strauss, and Kingsbury, a member of the Kohl's board since 2021, took over as CEO. Prior to his current role, Kingsbury served as CEO of Burlington Stores from 2008 to 2019.