Commentary

Kohl's Taps New Digital Leader, Expands 'Kohl's Mom' Push For BTS

 


Ellie Kemper stars in the new Kohl's campaign.

Still reeling from C-suite chaos and financial setbacks, Kohl’s is betting that some self-aware comedy — and a sharper digital strategy — can help it reconnect with cost-conscious families. The company is expanding its “Kohl’s Mom” ad campaign starring Ellie Kemper, and has just named a new chief digital officer to help lead the turnaround.

The new back-to-school ads build on the “Kohl’s Mom” effort launched in March, with Kemper — best known for “Unbreakable Kimmy Schmidt” — as a relentless bargain hunter who dispenses unsolicited advice to other shoppers. She praises bleachers as “the new runway,” warns a dad about the transition from “hoodie guy” to “cologne guy,” and even plants a Goth seed in a preppy preteen. The spots are running across broadcast, digital and social platforms.

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At the same time, the Menomonee Falls, Wisconsin-based chain is adding new digital firepower. It has appointed Arianne Parisi, formerly of JD Sports Fashion, as chief digital officer. She’s held similar roles at Finish Line and Nordstrom and replaces Siobhán McFeeney, now at Target, who left in April.

Kohl’s has struggled for years to hold onto its market share — and its leadership. In May, the company abruptly dismissed CEO Ashley Buchanan after less than 100 days, citing a conflict-of-interest violation. Michael Bender, a board member and former Walmart executive, is serving as interim CEO. Under his leadership, Kohl’s is pursuing three priorities: rebalancing its product mix, reinforcing its value reputation, and upgrading its digital experience.

In its most recent quarter, the company reported a 4.1% sales decline, with revenue falling to $3 billion and a net loss of $15 million. Kohl’s still reigns as America’s largest department store, with more than 1,100 stores and one of the industry’s largest loyalty programs. (Macy’s has more sales, but fewer stores.) But Kohl’s sales and foot traffic remain well below pre-pandemic levels.

David Swartz, an analyst who follows retail at Morningstar, sees bits of hope in the upgrades Kohl’s has made to its stores, operations, and merchandise. But he notes persistent sales and market share declines. And as the company’s ecommerce sales have grown, “we believe Kohl’s large fleet of big-box stores is unnecessary in an increasingly fragmented market.”

The next CEO faces considerable challenges: Kohl’s is “in desperate need of stability,” Swartz writes. “Bender is its fifth CEO in the last decade. Bender and, eventually, Kohl’s next permanent CEO will likely focus on the company’s merchandising and maintaining its reputation for quality and value.”

 

 

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