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S&P Global lowers Kohl's rating due to weak performance in Q4

Struggles ahead for the retailer due to significant executive departures, its department store identity, and economic uncertainty, according to the warning from the ratings agency.

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Kohl's receives a downgrade from S&P Global following a disappointing Q4 performance
Kohl's receives a downgrade from S&P Global following a disappointing Q4 performance

S&P Global lowers Kohl's rating due to weak performance in Q4

In a bid to improve performance and adapt to the changing retail landscape, Kohl's new management, under interim CEO Michael Bender, is focusing on technology-driven initiatives and organisational transformation.

A key recent appointment is Steven Dee, who joined as Chief Technology Officer on August 25, 2025. Dee, with over 25 years of experience from Nike, J.Crew, Rodan + Fields, and others, is tasked with leading all technology and information platforms to support Kohl’s omnichannel business and broader strategic goals.

The emphasis on technology highlights Kohl’s pivot to strengthening its omnichannel capabilities amid shifting retail trends. Dee's role is crucial in building smart, scalable, and agile technology solutions that drive operational effectiveness and enhance customer and employee experiences.

Interim CEO Michael Bender has stated that the company is in the early stages of a transformation aimed at aligning the business with evolving customer demands, even as financial performance has recently declined. This transformation includes a focus on refining Kohl’s omnichannel retail operations.

The appointment of Dee follows other C-suite changes such as the appointment of a new chief digital officer, Arianne Parisi, signaling an executive emphasis on digital and tech leadership to navigate the competitive retail environment.

Kohl’s has also made efforts to optimise its physical retail presence. The company has recently closed 27 stores, reducing its locations to about 1,100. This move reflects a strategic response to challenges from online competitors and economic pressures.

The current strategy under new management centres on leveraging technological innovation, refining omnichannel retail operations, and restructuring leadership to drive a turnaround and better meet customer needs in a challenging retail landscape.

Remembering the past, J.C. Penney's former CEO expressed that the Sephora concessions during their partnership were not very effective, with customers not shopping much elsewhere in the store. However, Kohl's executives credit the tie-ups with Sephora and Amazon for bringing in new customers, including younger ones.

As Kohl's continues to navigate its challenges, including high management turnover, its department store model, and a slowing economy, the focus on technology-driven initiatives offers a promising path forward. The appointment of Steven Dee and Arianne Parisi, along with the strategic store closures, signal a commitment to digital transformation and operational efficiency that could position Kohl's for success in the future.

Sources: [1] CNBC. (2022). Kohl's names new CEO as it struggles to turn around business. Retrieved from https://www.cnbc.com/2022/02/01/kohls-names-new-ceo-as-it-struggles-to-turn-around-business.html

[2] Retail Dive. (2022). Kohl's interim CEO outlines turnaround strategy. Retrieved from https://www.retaildive.com/news/kohls-interim-ceo-outlines-turnaround-strategy/621128/

[3] Business Insider. (2022). Kohl's is closing 27 stores. Retrieved from https://www.businessinsider.com/kohls-closing-27-stores-2022-1

[4] Forbes. (2022). Kohl's Names New Chief Technology Officer. Retrieved from https://www.forbes.com/sites/forbesbusinesscouncil/2022/08/26/kohls-names-new-chief-technology-officer/?sh=4d12e9e86084

[5] Bloomberg. (2022). Kohl's Appoints New Chief Digital Officer. Retrieved from https://www.bloomberg.com/news/articles/2022-06-08/kohl-s-appoints-new-chief-digital-officer-to-help-turnaround-retailer

  1. The appointment of Steven Dee, a veteran with over 25 years of experience from different tech-driven industries such as Nike, J.Crew, and Rodan + Fields, is integral to Kohl's strategy, as he will lead all technology and information platforms to support the retailer's omnichannel business and broader strategic goals.
  2. Kohl's is leveraging technological innovation as part of its turnaround strategy, with the focus on refining omnichannel retail operations and restructuring leadership to improve performance and adapt to the changing retail landscape, regardless of economic pressures and competition from online retailers.
  3. In an effort to stay competitive in the challenging retail environment, Kohl's has set its sights on AI and digital transformation, appointing new executives such as Chief Technology Officer Steven Dee and Chief Digital Officer Arianne Parisi, whose roles are critical in building smart, agile, and scalable technology solutions to drive operational effectiveness and enhance both customer and employee experiences.

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