What: Kohl's struggles with executive stability and strategic direction as it seeks its fourth CEO in three years while implementing store closures and operational changes.

Why it is important: The combination of leadership turnover and operational restructuring at Kohl's demonstrates the complex challenges retailers face in balancing corporate governance, strategic partnerships, and network optimisation.

Kohl's Corporation faces a critical juncture following the scandal-driven departure of CEO Ashley Buchanan, who was terminated for directing business to a romantic partner without proper disclosure. This marks the fourth leadership change in just three years, highlighting significant governance challenges at the retailer. The company's market position has steadily eroded, with sales declining from $20.2 billion in 2018 to $15.4 billion last year, while its stock price has plummeted to just over $7 from $25-27 a year ago. Despite some successful initiatives, such as the Sephora partnership and the popular Kohl's Cash programme, the retailer struggles to differentiate itself in an increasingly competitive market. The search for a new CEO is complicated by a limited pool of qualified candidates willing to take on this challenging turnaround situation, particularly given the requirement to relocate to Menomonee Falls, Wisconsin. The company must also address growing leverage concerns, with $353 million in debt due in July requiring refinancing.

IADS Notes: The recent termination of CEO Ashley Buchanan in May 2025 represents the latest challenge in Kohl's ongoing transformation journey. While the company has seen some success with strategic initiatives, particularly the Sephora partnership generating $1.4 billion in sales as of March 2024, the frequent leadership changes - four CEOs in three years - have complicated its turnaround efforts. The January 2025 announcement of 27 store closures and the shutdown of its San Bernardino e-commerce facility reflects a broader restructuring strategy, as the company shifts towards store-based fulfillment and operational efficiency. These developments highlight the complex balance Kohl's must strike between maintaining stability, implementing successful partnerships, and optimising its retail footprint.

What can Kohl’s do to survive?