The number of women in top retail jobs is declining, while CEO turnover increases.

• The retail industry saw a significant increase in CEO turnover in 2023.
• Since 2002, retail CEO departures have been the second-highest they have been, according to Challenger, Gray & Christmas.
• Companies are rarely naming women as their new CEOs in the retail industry.

Last year, there was a significant increase in turnover among C-suite executives across various industries, with retail experiencing the highest rate of change.

New CEOs will assume leadership at both and next week, with turnover in corner offices exceeding the prominent names.

In 2023, U.S. companies experienced a record number of CEO departures, with 1,914 departures, representing a 55% increase from the previous year, according to Challenger, Gray & Christmas. The firm tracks CEO changes in public, private, government, and nonprofit U.S. businesses.

According to Andy Challenger, senior vice president at Challenger, Gray & Christmas, CEOs were hesitant to depart from their organizations during the Covid crisis. The pandemic had a profound impact on the retail industry, causing boards to resist making changes and CEOs to remain reluctant to leave. However, as the crisis has subsided, there has been a growing demand for individuals to move on.

The pandemic has forced companies' boards of directors to seek new strategies and leaders to adapt to changes in consumer preferences, as stated by Challenger.

In 2023, the retail industry experienced 52 CEO departures, which was the second-highest number since Challenger, Gray & Christmas began tracking them. This was more than double the number of CEO turnovers in 2022. However, it was below the record 63 CEO departures in the industry in 2019.

Challenger stated that retail has likely experienced its largest leadership shakeup in a long time.

In 2023, Korn Ferry analyzed retail CEO turnover and found that 57% of new CEOs were already working for the company they would lead, while 43% were external hires, with 45% coming from outside of retail.

Women lose corner offices in retail

Michelle Gass will become the 13th CEO of Levi Strauss, a major retailer, in its 171-year history, and the first female chief executive. She is one of a few women named as CEO at a major retailer in 2023.

Last year, 13 women left their retail CEO positions, while only 5 women assumed top jobs at companies in the industry, according to John Long, Korn Ferry North America's retail sector lead.

He called the trend “surprising.”

Gass, who previously served as Kohl's CEO, has been appointed to the C-suite at Levi's, replacing Thomas Kingsbury.

Other women commonly followed that trajectory when taking over top retail jobs. According to Korn Ferry, four out of the five incoming female retail CEOs were internal appointments.

Although recent advancements have been made, the number of women in CEO positions is still significantly lower than men across all industries. However, the percentage of female CEOs is higher in all sectors compared to the retail industry specifically.

According to Challenger, the highest percentage of new CEOs coming in that we’ve ever tracked were women, which is a positive number, but it’s only 28%, not even close to equity.

According to Korn Ferry, only 11% of incoming retail CEOs are women. Retail and consumer-facing companies are frequently under scrutiny for gender disparity at the top due to demographic data indicating that the majority of retail consumers are women.

According to Long, the selection of CEOs is often influenced by the company's mandate rather than the needs of the customer. If the company is pursuing a growth or turnaround mandate, they tend to look for candidates with relevant experience.

The average tenure of departing retail CEOs last year was 6.6 years, with men having an average tenure of 7.7 years and women having an average tenure of just 3.7 years, according to Korn Ferry's analysis.

Despite removing two male chief executives with extended tenures, the average male retail CEO tenure remains slightly longer than the average female retail CEO tenure, which is 6 years.

A few factors may explain why women have shorter tenures as retail CEOs.

Some experts argue that the reason for shorter tenures of female CEOs is due to the "glass cliff" phenomenon, which posits that women and minorities are often placed in challenging positions, increasing their chances of failure.

Lorraine Hariton, CEO of Catalyst, stated that women face systemic barriers in achieving parity in the workplace, with getting to 10% of female CEOs being a significant challenge.

Hariton stated that the retail industry is currently facing challenges, and when organizations are struggling, they tend to cast a wider net when searching for candidates. However, if you are entering a struggling situation without prior preparation, your chances of success are significantly reduced.

Hariton explains that one aspect of the "glass cliff" phenomenon is that "unfortunately, unconscious biases still persist."

"What is your perception, and do you receive the advantage of uncertainty?" she inquired.

The shorter average tenures of women CEOs may be due to the lower patience people have for them.

While women are often found in various roles such as general counsel, chief financial officer, human resources, and marketing, fewer companies seem to be preparing them for CEO positions in their succession planning.

Hariton expressed his hope for a day when the topic wouldn't need to be discussed.