Report: Kohl's in late stages to name Tom Kingsbury as permanent CEO

MENOMONEE FALLS, Wis. (CBS 58) -- Menomonee Falls-based retailer Kohl's is 'closing in' on naming interim CEO Tom Kingsbury as its permanent chief executive, according to a report from The New York Times.

Kingsbury took over in 2022 following the departure of former CEO Michelle Glass, who went on to Levi Strauss.

"We do not comment on rumors or speculation," a Kohl's representative told CBS 58.

Kohl's stock price has dropped by about half over the course of the last year from about $60 a share to around $32 a share.

On top of that, the company announced just under 60 jobs cut at its headquarters.

"Kohl’s reorganized parts of our organization to drive greater efficiency in our operations," Kohl's Senior VP of Corporate Communications Jen Johnson said in a statement. "These efforts, which primarily impacted Marketing and Merchandising teams, reorganized some leadership roles and positions, including the elimination of less than 60 positions."

Experts told CBS 58 it would not be a surprise if Kingsbury shifted to a permanent role to direct the company's direction.

"The strategy really needs to be rethought and Kingsbury, I think, can do a really good job," Margaret Hughes-Morgan, an associate professor of strategic management at Marquette University, told CBS 58 in an interview. "He did a great job at Burlington Enterprises."

Kingsbury could take over in a permanent role at a time when the retailer is figuring out ways to attract customers to its stores who otherwise may choose online options or are trying to cut back on spending.

"Kohl's really has an identity crisis at this point," Hughes-Morgan said. "They are a mid-level retailer, and those retailers are losing a large part of their customer base, partly due to inflation, people don't have as much discretionary income, but there's no real 'why are we coming to this store.'"

Strategies in recent years have included experimenting with smaller store sizes, similar to the downtown Milwaukee location, as well as bolstering partnerships like the one Kohl's has with Sephora. The hope is the company can be steered to better days ahead with stable leadership.

"They are a profitable company and so there is no question that they are going to continue to be a viable entity into the future," Hughes-Morgan said.

But while remaining valuable, Hughes-Morgan said cost-cutting strategies, like salary reductions or layoffs, may be considered going forward to regain investor confidence.