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| Kohl’s Chief Executive, Michelle Gass, Will Depart to Join Levi’s | Kohl’s Chief Executive, Michelle Gass, Will Depart to Join Levi’s |
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| Kohl’s chief executive, Michelle Gass, is leaving the department store chain next month to become president of Levi Strauss & Company and eventually succeed its longtime leader, Chip Bergh. | Kohl’s chief executive, Michelle Gass, is leaving the department store chain next month to become president of Levi Strauss & Company and eventually succeed its longtime leader, Chip Bergh. |
| Ms. Gass will depart Dec. 2, in the middle of the critical holiday season, after four years in Kohl’s top post. Levi’s said on Tuesday that she would replace Mr. Bergh, who has led the company since 2011, as chief executive within the next 18 months. | Ms. Gass will depart Dec. 2, in the middle of the critical holiday season, after four years in Kohl’s top post. Levi’s said on Tuesday that she would replace Mr. Bergh, who has led the company since 2011, as chief executive within the next 18 months. |
| Mr. Bergh said the choice of his successor would help define his legacy at Levi’s, and he expressed confidence that Ms. Gass was the right person for the role. | Mr. Bergh said the choice of his successor would help define his legacy at Levi’s, and he expressed confidence that Ms. Gass was the right person for the role. |
| “I expect that she’s going to bring a real innovation mind-set here,” Mr. Bergh said in an interview. “That will contribute to the continued transformation of the company.” | “I expect that she’s going to bring a real innovation mind-set here,” Mr. Bergh said in an interview. “That will contribute to the continued transformation of the company.” |
| He has been focused on making sure the Levi’s signature denim jeans still hold cultural resonance with the increasingly important Generation Z shopper. | He has been focused on making sure the Levi’s signature denim jeans still hold cultural resonance with the increasingly important Generation Z shopper. |
| In recent years, Levi’s, a 169-year-old multinational brand, has experienced many changes. It became a publicly traded company for the second time in 2019, focused on expanding in international markets like China, and it has ramped up its messaging around sustainability and durability. The transition period that Levi’s board has built in for Ms. Gass “gives her an opportunity to formulate her agenda when she becomes C.E.O. before she’s sitting in the hot seat,” Mr. Bergh said. | In recent years, Levi’s, a 169-year-old multinational brand, has experienced many changes. It became a publicly traded company for the second time in 2019, focused on expanding in international markets like China, and it has ramped up its messaging around sustainability and durability. The transition period that Levi’s board has built in for Ms. Gass “gives her an opportunity to formulate her agenda when she becomes C.E.O. before she’s sitting in the hot seat,” Mr. Bergh said. |
| Mr. Bergh had groomed several candidates to be his successor, but said four of them had left to take top positions at other companies. That was when the company started looking for outside candidates. | Mr. Bergh had groomed several candidates to be his successor, but said four of them had left to take top positions at other companies. That was when the company started looking for outside candidates. |
| Levi’s recently had an executive exit that was more contentious. Its brand president, Jennifer Sey, who was considered a leading candidate to replace Mr. Bergh, left Levi’s this year after becoming increasingly outspoken about pandemic school closings. She said the company had forced her out because of her views. Levi’s disputed her claim. | Levi’s recently had an executive exit that was more contentious. Its brand president, Jennifer Sey, who was considered a leading candidate to replace Mr. Bergh, left Levi’s this year after becoming increasingly outspoken about pandemic school closings. She said the company had forced her out because of her views. Levi’s disputed her claim. |
| At Kohl’s, Ms. Gass started a number of initiatives to bolster sales and help transform the retailer’s image as a destination for millennial parents and Gen Z consumers. She oversaw the introduction of the Amazon returns program, which allows shoppers to walk into a Kohl’s store and drop off goods purchased through the online retailer. Kohl’s has said customers tend to stay around to shop at its stores after making an Amazon return. | At Kohl’s, Ms. Gass started a number of initiatives to bolster sales and help transform the retailer’s image as a destination for millennial parents and Gen Z consumers. She oversaw the introduction of the Amazon returns program, which allows shoppers to walk into a Kohl’s store and drop off goods purchased through the online retailer. Kohl’s has said customers tend to stay around to shop at its stores after making an Amazon return. |
| It is also testing a smaller footprint for its stores, and opened a 35,000-square-foot store in Tacoma, Wash., last month. A typical Kohl’s is around 80,000 square feet. | It is also testing a smaller footprint for its stores, and opened a 35,000-square-foot store in Tacoma, Wash., last month. A typical Kohl’s is around 80,000 square feet. |
| Kohl’s has put a huge emphasis on its partnership with Sephora, which will have 600 shop-in-shops in Kohl’s stores by the end of the year and plans to open 250 more in 2023. Kohl’s sees the partnership generating $2 billion in annual sales by 2025. | Kohl’s has put a huge emphasis on its partnership with Sephora, which will have 600 shop-in-shops in Kohl’s stores by the end of the year and plans to open 250 more in 2023. Kohl’s sees the partnership generating $2 billion in annual sales by 2025. |
| Still, Ms. Gass is leaving at a challenging time for the chain. Its core shoppers — middle-income Americans — have faced intense pressure from inflation on a range of items and have pulled back on buying discretionary items like apparel. The holiday shopping season is likely going to be weak, said Craig Johnson, president of Customer Growth Partners, a retail advisory firm. | Still, Ms. Gass is leaving at a challenging time for the chain. Its core shoppers — middle-income Americans — have faced intense pressure from inflation on a range of items and have pulled back on buying discretionary items like apparel. The holiday shopping season is likely going to be weak, said Craig Johnson, president of Customer Growth Partners, a retail advisory firm. |
| Kohl’s announced preliminary third-quarter results on Tuesday, reporting that same-store sales fell 6.9 percent and its operating margin was 4.7 percent. It said it would release full quarterly earnings on Nov. 17. | Kohl’s announced preliminary third-quarter results on Tuesday, reporting that same-store sales fell 6.9 percent and its operating margin was 4.7 percent. It said it would release full quarterly earnings on Nov. 17. |
| “Clearly she has tried a number of things, but the success in them has been a mixed bag,” Mr. Johnson said. Her successor will have to contend with some structural decisions, he said, including the number of stores that Kohl’s should have. The chain has 1,100 across the United States. | “Clearly she has tried a number of things, but the success in them has been a mixed bag,” Mr. Johnson said. Her successor will have to contend with some structural decisions, he said, including the number of stores that Kohl’s should have. The chain has 1,100 across the United States. |
| Ms. Gass joined Kohl’s in 2013, after a long tenure at Starbucks, where she was credited with creating the Frappuccino and its caramel drizzle. On Tuesday, Kohl’s praised her efforts to reshape the company for a younger generation. | Ms. Gass joined Kohl’s in 2013, after a long tenure at Starbucks, where she was credited with creating the Frappuccino and its caramel drizzle. On Tuesday, Kohl’s praised her efforts to reshape the company for a younger generation. |
| “Under her leadership, the company has driven a strategic transformation, expanded its partnerships and brand portfolio, and supported an inclusive and collaborative culture,” Peter Boneparth, Kohl’s chairman, said in a statement. | “Under her leadership, the company has driven a strategic transformation, expanded its partnerships and brand portfolio, and supported an inclusive and collaborative culture,” Peter Boneparth, Kohl’s chairman, said in a statement. |
| Thomas Kingsbury, a Kohl’s board member and former chief executive of Burlington, will be interim chief executive while Kohl’s looks for a permanent leader. | Thomas Kingsbury, a Kohl’s board member and former chief executive of Burlington, will be interim chief executive while Kohl’s looks for a permanent leader. |
| Kohl’s stock price has dropped 42 percent since the beginning of the year, and the retailer has been under pressure to improve its financial fortunes. In January, it was pushed by a handful of activist investors to sell itself. | |
| Levi’s has seen its stock price fall 40 percent since the start of the year. |