Kohl's Makes a U-turn in the United States and Takes a Drastic Decision

The American chain Kohl's is going through a stage marked by unexpected decisions. In a difficult context for the retail sector, the company has taken a direction that has surprised employees, investors, and customers. Although the announcement has caused a stir, the most delicate details have been revealed afterward.

Kohl's hasn't presented catastrophic results nor announced bankruptcy. However, the company has deemed it necessary to intervene decisively in its leadership structure. The news comes at a time when the market demands clarity, stability, and trust.

A Sudden Dismissal with Internal Causes

The company has confirmed the dismissal of its CEO, Ashley Buchanan, following an internal investigation that exposed a series of irregularities. According to official sources, Buchanan kept relationships with suppliers that caused undisclosed conflicts of interest. Despite the seriousness of the situation, Kohl's clarifies that this decision is unrelated to its financial performance.

Buchanan, who had taken the position at the beginning of the year after previously leading the well-known chain Michaels, has been temporarily replaced by President Michael Bender. He will occupy the position while the selection process for a new CEO is carried out. The company has avoided giving more details about the investigation process or possible additional sanctions.

This internal shake-up comes at a critical period for Kohl's, which has more than 1,600 stores in the United States. Amid a context of declining sales, the chain expects a drop in its quarterly results. A decline of 4% to 4.3% in sales and losses per share of between 20 and 24 cents is expected, according to Mundo Deportivo.

External Pressure and Uncertain Future

The outlook facing the company goes beyond this specific conflict. In recent months, consumers have reduced their spending due to inflation, especially in the middle-income segment, which represents a significant part of Kohl's audience. This behavior has benefited competitors like Amazon and Walmart, which continue to gain market share thanks to more aggressive pricing strategies.

The situation worsens considering the recent turnover in the top management. Ashley Buchanan had succeeded Tom Kingsbury, who was interim CEO at the end of 2022 and became the official leader in February 2023. Kingsbury will completely leave his duties next month, although he will keep his seat on the board of directors until then.

For now, Kohl's has limited itself to informing that it will soon announce a new president and that its priority is to restore internal and external credibility. The publication of the official results, scheduled for May 29, will mark a key moment to assess the impact of these changes. With multiple challenges on the horizon, the company is trying to project an image of control amid uncertainty.