Kohl’s Appoints 30-Year Retail Veteran Michael J. Bender as Permanent CEO

Kohl’s Stabilizes Leadership, Naming Michael J. Bender Permanent Chief Executive

Kohl’s Corporation (KSS) has officially appointed Michael J. Bender as its permanent Chief Executive Officer, concluding a period of leadership uncertainty and signaling a commitment to stabilizing the company’s long-term strategy. Bender, a 30-year veteran of the retail industry, had been serving as interim CEO for nearly seven months before the board confirmed his permanent status.

The appointment comes at a critical juncture for the department store chain, which has faced significant pressure from activist investors and struggled with an extended decline in sales performance. By promoting Bender, who previously served as the company’s Chief Operating Officer (COO), the board is betting on operational expertise and continuity to drive the crucial turnaround efforts.

The Challenge of Instability: Fourth CEO in Four Years

Bender’s confirmation is intended to bring much-needed stability to the executive suite. Kohl’s has experienced high leadership turnover, with Bender becoming the fourth CEO in as many years. This frequent change at the top has complicated the retailer’s efforts to define and execute a consistent strategy in a rapidly evolving retail landscape.

The search for a permanent leader was accelerated following the departure of former CEO Michelle Gass in December 2023. Gass left Kohl’s to take on the role of President at Levi Strauss & Co.

During his time as interim leader, Bender was tasked with maintaining momentum on key strategic initiatives while the board conducted its search. His ultimate promotion reflects the board’s confidence in his ability to execute the company’s vision, particularly its focus on integrating digital and physical shopping experiences.

Michael Bender’s Extensive Retail and E-commerce Background

Michael Bender’s qualifications are rooted in decades of experience across diverse segments of the retail sector, making him a fitting choice for a company prioritizing its omni-channel strategy. He first joined Kohl’s in 2017 as COO, giving him deep familiarity with the company’s operational structure and challenges.

Prior to his tenure at Kohl’s, Bender held significant leadership roles that underscore his expertise in large-scale operations and digital commerce:

• Walmart’s E-commerce Division: He served as COO, gaining critical experience in scaling digital operations and logistics—a vital area for traditional retailers competing with online giants.
• The Home Depot: Bender held various leadership positions, focusing on the operational efficiency of large-format stores.
• Lowe’s: He also contributed his expertise to the home improvement sector, further solidifying his background in complex retail logistics and customer experience management.

This blend of experience across big-box retail, home improvement, and dedicated e-commerce operations is precisely what the Kohl’s board believes is necessary to navigate the current retail environment, which demands seamless integration between physical stores and online platforms.

The Strategic Mandate: Omni-channel and Sephora

Bender’s primary mandate is to aggressively execute the company’s existing turnaround plan, which centers on three core pillars: the omni-channel strategy, the expansion of the Sephora at Kohl’s partnership, and the enhancement of the loyalty program.

Driving the Omni-channel Experience

The board, in its official statement, expressed confidence in Bender’s ability to lead the omni-channel strategy. This strategy aims to leverage Kohl’s vast network of physical stores not just as sales floors, but as crucial hubs for online fulfillment, returns, and customer engagement. The goal is to make shopping at Kohl’s convenient regardless of whether the customer starts online or in-store.

Leveraging the Sephora Partnership

The partnership with beauty retailer Sephora remains the most visible and critical component of Kohl’s strategy to attract younger, higher-spending customers and drive foot traffic into its stores. The successful rollout and performance of the in-store Sephora shops are essential metrics for the company’s overall health. Bender must ensure this partnership continues to deliver the expected sales lift and customer engagement.

Addressing Investor Pressure

The leadership change occurs against a backdrop of intense scrutiny. Kohl’s has been a frequent target of activist investors pushing for strategic changes, including a potential sale of the company. While several takeover bids failed in recent years, the pressure to demonstrate improved financial performance remains high. Bender’s operational focus is expected to translate into tangible improvements in efficiency and profitability, which are necessary to appease shareholders and justify the company’s independent path.

Key Takeaways for the Retail Sector

Michael Bender’s permanent appointment signifies a strategic choice by Kohl’s to prioritize operational stability and deep retail expertise over external change. The decision suggests the board believes the current strategy is sound, but requires disciplined execution.

Key takeaways from this leadership transition include:

• Stability Over Disruption: After a period of high turnover, the promotion of an internal veteran like Bender signals a desire for stability and continuity in executing the existing turnaround plan.
• Operational Focus: Bender’s extensive background as a COO at major retailers emphasizes the importance of logistics, supply chain management, and efficient store operations in Kohl’s recovery efforts.
• E-commerce Priority: His experience leading Walmart’s e-commerce operations is vital as Kohl’s seeks to maximize its digital sales channels and integrate them seamlessly with its physical footprint.
• High Stakes: Bender faces the immediate challenge of reversing the sales slide and proving to skeptical investors that the company can thrive independently, leveraging assets like the Sephora at Kohl’s concept.

Conclusion: A New Chapter for Kohl’s

Michael J. Bender’s transition from interim to permanent CEO closes a chapter of leadership uncertainty for Kohl’s. His deep operational knowledge and 30 years in the retail industry provide the necessary expertise to tackle the complex challenges facing the department store sector today.

The market and investors will now closely monitor the pace and effectiveness of the omni-channel strategy under his permanent leadership. For Kohl’s, the path forward relies heavily on leveraging its physical stores as strategic assets while simultaneously enhancing the digital experience, a task for which Bender’s background seems uniquely suited.