Longtime Kohl’s customers have a message for new CEO Ashley Buchanan: Restore the store to its former glory, the Wall Street Journal reports.
In recent years, Kohl’s has made several strategic shifts to attract younger shoppers, such as introducing Sephora cosmetics and Babies “R” Us shops, while scaling back fine jewelry, petite clothing sizes, and popular private-label brands. These changes alienated loyal customers and contributed to a steep decline in sales, with the retailer losing over half a billion dollars in revenue over two years.
Outgoing CEO Tom Kingsbury acknowledged these missteps during a recent call with analysts. While Kohl’s isn’t abandoning Sephora or Babies “R” Us—which have successfully drawn younger customers—it has begun reintroducing many of the items it had removed. The ultimate direction, however, will rest with Buchanan, who recently assumed the role as the company’s third CEO in as many years.
Buchanan, 50, comes to Kohl’s after leading crafts retailer Michaels and a 12-year tenure at Walmart. At Michaels, he launched an online marketplace, MakerPlace, aimed at younger shoppers while retaining the interest of older crafters. However, the challenges at Kohl’s are significant, with sales declining for 11 consecutive quarters and the stock losing nearly 50% of its value in the past year.
Longtime shoppers like Adrienne Cestare-Alfano, who has frequented Kohl’s for over two decades, express frustration at the store’s new direction. She laments the diminished availability of petite clothing and trusted private-label brands.
“Why do I want to see Nike and Eddie Bauer in Kohl’s when they are for sale all over the mall?” she asked.
Others, like Clare Lundberg, 70, are critical of the space devoted to Sephora.
“To me, it’s a waste of space,” she said. “I’m not a Sephora shopper and I don’t go to Kohl’s for cosmetics.”
Despite these criticisms, Kingsbury noted that Sephora has brought in new customers, with 40% of Sephora shoppers being first-time Kohl’s visitors. Babies “R” Us, another recent addition, is broadening the retailer’s reach to young families.
Beyond merchandise, Buchanan will also need to address operational concerns. Some customers have complained about disorganized displays and messy stores, which contrast sharply with competitors like Dillard’s, known for its tidy and well-stocked layouts.
At Michaels, Buchanan tackled similar issues by cleaning up stores, improving inventory management, and enhancing the e-commerce experience. Industry insiders describe him as having a talent for identifying products that resonate with shoppers, often seeking feedback from his three daughters.
Buchanan also brings experience with taking companies private, a move that Kohl’s may consider to avoid the pressures of quarterly earnings reports. Several department store chains, including JCPenney and Nordstrom, have pursued privatization to focus on long-term investments.
Kohl’s has some inherent advantages, such as its 1,100 locations in easily accessible strip malls rather than aging enclosed malls. However, location alone may not be enough to reverse its fortunes. Loyal customers like John Edwards, 82, are choosing competitors for their superior shopping experiences.
