"On Monday, Kohl's announced that long-time board member Michael Bender would become its CEO after six months in the role on an interim basis following the firing of his predecessor for major ethics violations. And on Tuesday, the department store chain reported that sales had slipped a less-than-expected 2.8% to $3.41 billion in its third quarter. It now expects them to fall 3.5% to 4% for the full fiscal year-a smaller drop than previously anticipated."
"All good and well. But Bender's real job has to be to win shoppers back-not just to manage decline. The most recent quarter was the 15th in a row to see sales deterioration, a trajectory reminiscent of the dramatic declines-which led to bankruptcies-at J.C. Penney and Sears just a few years ago. Kohl's has lost millions of customers, and its business is now 22% smaller than it was in 2019, while T.J. Maxx, Walmart, and Target are all much larger now."
Michael Bender was promoted from interim to CEO after six months, following his predecessor's firing for major ethics violations. Third-quarter sales fell 2.8% to $3.41 billion, and full-year sales are now expected to decline 3.5%–4%, a smaller drop than previously forecast. Shares rose 35% as Bender protected profit margins by managing inventory levels and cutting costs. Sales have deteriorated for fifteen consecutive quarters, with the business 22% smaller than in 2019 and millions of customers lost. Competitors such as T.J. Maxx, Walmart, and Target have grown larger. Bender is one of only ten Black Fortune 500 CEOs and needs buy-in from Kohl's 87,000 employees to reverse the trajectory.
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