Kohl’s names Michael Bender as permanent CEO after a turbulent year and sales declines

Kohl’s said Monday that Michael Bender, who has served as its interim CEO, will become its permanent chief executive as the department store tries to get back to sales growth.

He becomes the third CEO for the department store in about three years. The move is effective as of Sunday.

Bender, who has been director of Kohl’s board since July 2019, became the company’s interim CEO in May. The retailer appointed Bender to the position after firing CEO Ashley Buchanan after just a few months into his tenure.

Kohl’s fired Buchanan after it said a company investigation found that he had pushed for deals with a vendor with whom he had a personal relationship. That person was Chandra Holt, a former retail executive who had a romantic relationship with Buchanan.

Kohl’s leadership announcement comes a day before the retailer reports fiscal third-quarter earnings. Along with leadership turmoil, Kohl’s has struggled with declining sales. The company said in August that it expects net sales to drop by 5% to 6% for the fiscal year.

Kohl’s has had many changes at the top since former CEO Michelle Gass left the company in 2022 to join Levi Strauss & Co., where she later succeeded then-CEO Chip Bergh. She was followed at Kohl’s by Tom Kingsbury, a then-board member of the company, who became interim and then permanent CEO.

Bender, 64, previously held leadership and management roles at retailers including Victoria’s Secret, Walmart and Eyemart Express. Along with his role as CEO, Bender will continue to serve on the company’s board.

In a news release, board chair John Schlifske said Kohl’s hired an external firm and “conducted a comprehensive search” for the retailer’s new leader. He said Bender is the right person for the job because of his “three decades of leadership experience across retail and consumer goods companies and a deep commitment to the Kohl’s brand.”

“Over the past several months as interim CEO, Michael has proven to be an exceptional leader for Kohl’s – progressively improving results, driving short and long-term strategy, and positively impacting cultural change,” he said.

In a CNBC interview, Bender described Kohl’s turnaround as “heading toward close to the middle innings.”

“For me, that’s a good thing, because it means there’s still good work to be done, and ideas and challenges to bring forward to solve,” he said.

At Kohl’s, he said customers have “a lot of excitement,” but also “a more discerning, choiceful attitude about the dollars they spend.”

“What they’re looking for from retailers is curating assortment for me of quality products at a value that compels me to either get off the couch, or if I want to stay on the couch, to get on my phone and and order from you because they signify value for me,” he said.

Over the past five years, Kohl’s shares have fallen by about 53%. So far this year, its stock is up nearly 12%.

— CNBC’s Courtney Reagan contributed to this report