Kohl’s names new CEO

NEW YORK – Kohl’s Corp. announced Thursday that Chairman Larry Montgomery has resigned as chief executive and will be replaced in that role by the retailer’s president, Kevin Mansell.

The changes come as the Menomonee Falls, Wis.-based department store chain has been facing a sales slowdown amid a weakening economic environment.

Montgomery, 59, will remain as chairman and will hold full-time management responsibilities for the company’s strategic growth and talent management initiatives. Montgomery will continue to manage Kohl’s human resources, legal and real estate departments.

As president and chief executive, Mansell, 56, a 26-year-veteran of Kohl’s who has served as president since 1999, will be responsible for the development and execution of strategic initiatives, day-to-day operations and long-term growth plan.

In addition to his current management responsibilities that include merchandise and store planning and business development, Mansell will also manage finance and store operations.

“Having worked with Kevin for over 20 years, I am confident he is the right choice to lead Kohl’s Corporation,” said Montgomery in a statement.”His strategic vision, in-depth management experience, and extensive knowledge of Kohl’s and the retail landscape, will allow him to effectively manage the organization for long-term sustainable growth.”

Mansell joined the company in 1982 as a divisional merchandise manager and was promoted to general merchandise manager in 1987. Over the next nine years, his responsibilities expanded to include merchandise planning and allocation. Mansell was promoted to senior executive vice president of merchandising and marketing in 1998.

Since 1999, Mansell has served as president. Mansell and Montgomery worked together in senior executive leadership roles for more than 20 years and as a collaborative president and CEO team for nearly 10 years, the company said.

Kohl’s reported last week that its second-quarter profit fell more than 12 percent as same-store sales dipped amid a challenging economic environment.

Overall sales rose 3.8 percent, but same-store sales — a key figure in retailing that measures sales at stores open at least a year — dropped 4.6 percent.

Montgomery told investors last week that margins improved in the quarter as the company saw progress in its private and exclusive brands, which also helps Kohl’s keep expenses down.

The company is assuming that same-store-sales will fall between 2 percent and 4 percent in the third and fourth quarters.