Kohl's Cuts Three Leadership Positions After Weak Holiday Sales in Move To Be More Agile
By Christine Kern, contributing writer
Pursuing the “Greatness Agenda” means making hard decisions.
Following weak sales growth during the holiday quarter, Kohl’s Corp. has announced the elimination of three senior executive positions, including chief digital officer, senior vice president of store environment and development, and senior vice president of communications and public relations, and none of these potions will be filled, according to The Milwaukee Journal Sentinel.
Kohl’s spokesperson Jen Johnson told news outlets that the move is part of a company-wide restructuring initiative designed to create a “faster, more agile organization.” She described these personnel changes as “back-of-the-house reorganization.”
The effort also comes as Kohl’s continues to struggle with the implementation of its “Greatness Agenda,” its turnaround plan. The Milwaukee Journal Sentinel obtained an internal email in which Kohl’s CEO Kevin Mansell admitted that the retailer is “not getting to the results we want as fast as we should.”
Kohl’s has been conscientiously working to improve customer experiences and boost sales. Last fall, Kohl’s announced the introduction of several new omnichannel shopping tools as well as the pilot of same-day delivery in select markets.
Mansell stated, “Kohl’s is committed to providing our customers with an easy, convenient shopping experience in a way that is personalized and engaging – no matter how each customer prefers to shop. Our digital teams are continually testing new ideas and capabilities to create a world-class omnichannel experience that is seamless across devices. With each evolution, we aim to elevate our offerings for an easy, inspiring shopping experience.”
Under the “Greatness Agenda,” Kohl’s aims to lift sales from $19 billion in 2014 to $21 in 2017, and according to Mansell, these latest changes will help make the company more nimble and position it to deliver “projects that resonate with what today’s consumers demand.”
Kohl’s has many advantages over other department stores, like being away from the mall, says Howard Davidowitz, chairman of New York City-based retail consulting and investment banking firm Davidowitz & Associates Inc., who told Retail Dive that Kohl’s has “the best metrics in the department store business,”
Davidowitz says, their customers continue to struggle even in an improved economy." Kohl’s is slowing down because the middle class is getting killed,” he said.
Like other department stores, Kohl’s has struggled with growth, losing out to online rivals and fast-fashion chains, as well as growing competition from Macy’s and JCPenney, particularly as more and more consumers are shifting spending away from apparel and towards experiences and electronics. In recent years, overall sales growth has been flat while profits have been declining. Sales at stores open at least a year have declined for the past two years.