Revamping of board is integral to long-term success of any firm. Kohl’s investors too believe in the same!
The American retailer’s investors, on Monday (22 February), nominated 9 independent directors in its efforts to refresh the Kohl’s board.
The investors, who together own 9.5 per cent of its common stock, announced the above in a letter written to shareholders – a significant move with the annual meeting nearing.
Meanwhile, Kohl’s has said, as per media reports, Board and management team have been in close talks with the Investor Group since December 2020 and are open to new ideas.
The retailer also expressed optimism that its new strategic framework, which was published late last year, will help enhance its growth and profitability going forward.
It is important to note here that Ancora Holdings, Macellum Advisors, Legion Partners Asset Management, 4010 Capital and many affiliates have been constantly critical about Kohl’s poor retail strategy and execution, which has led to its stagnant sales and poor operating margins.
But it’s not that Kohl’s has not been putting efforts! Lately, it has been revamping some of its private brands. Besides, it also recently joined hands with Eddie Bauer to meet the growing demand for outdoor category.
However, the Investor Group wants Kohl’s to bring more changes in several areas like implementing effective marketing strategies, merchandising upgrades, efficient capital investments and others.
The new directors – with right levels of experience and expertise – may change the fortunes of this American retailer, believes the Group and some industry experts.
We will have to wait and watch what happens next at Kohl’s!
Majorly known mainly for its clothing, footwear and bedding, Kohl’s generated US $ 20.229 billion in 2018.