Kohl’s Inc., the department store chain, has announced that Ashley Buchanan, currently the CEO of Michaels, will take on the role of CEO at Kohl’s, beginning January 15.

Buchanan is set to replace Tom Kingsbury, who will continue in an advisory capacity and remain on the board of directors until his retirement in May 2025. Kingsbury first stepped in as Kohl’s interim CEO in December 2022 before being named the permanent leader in February 2023.

Buchanan’s leadership comes at a challenging time for Kohl’s, as the retailer has been dealing with decreased sales. Customers in the middle-income bracket have reduced their spending on non-essential items due to persistently high prices on everyday goods. Additionally, Kohl’s faces tough competition from retail giants like Walmart and Amazon, which have been enhancing their fashion selections at competitive prices.

Based in Wisconsin, Kohl’s operates approximately 1,600 stores throughout the United States.

Ashley Buchanan has been leading Michaels since 2020, and his previous experience includes various high-level executive positions at Walmart and Sam’s Club, where he spent 13 years. During his tenure at Michaels, he notably enhanced the company’s digital presence and expanded its small-format store strategy, while also streamlining its merchandise approach.

In his time at Walmart, Buchanan served in significant roles, such as chief merchandising officer and chief operating officer for Walmart’s U.S. e-commerce division. He was also the chief merchant at Sam’s Club, where he was responsible for merchandising strategies, private label brands, pricing, global sourcing, packaging, and the supply chain network.

Before his career at Walmart, Buchanan worked at Dell in several financial roles and also gained experience at Accenture, specializing in the retail sector.

Following the announcement of Buchanan’s appointment, Kohl’s shares dropped nearly 5%, down 84 cents to $17.50 in after-hours trading on Monday; however, the stock had risen nearly 8%, increasing by $1.31 to $18.34 during regular trading hours that same day.