Why Retail C-Suites Are Changing – It’s A Tough Job With Few Rewards

Every other day I hear of another CEO leaving his job and an “interim” CEO takes charge and heroically tries to stem the outflow of cash. What is going on? Several key positions including VF
VFC
Corp. and Kohl’s have been open for some time and in the post- Christmas period more executive boards will wave good-bye to their CEO’s.

Before I list recent departures, I must point out to our readers that it was a terrible holiday selling season. First it was too warm (“don’t buy winter clothes and shoes”) then it was too cold (“I won’t go out in this cold weather”) then it tuned warm again with no snow on the ground. There is no retailer that acted fast enough to keep up with the changing weather.

Seriously, some board changes occur after a weak leadership performance throughout the past year. Others are brought about by a lack of attention to changing shopping patterns, a lack of vision for a changing industry or a lack of temperament in volatile situation. There are many reasons – but one shines above all others – sales did not materialize as projected for their companies and board members felt a change would help. The Covid period has made everyone more sensitive for changes.

Fortunately, most CEOs are given the privilege of resigning. That is good since the CEO can leave with his head high, and a vision for a personal future. He or she certainly learned a lot on the job they just lost and it will make them stronger administrators in the future.

One of the most important announcements was from LVMH. Two new CEOs were named. Christian Dior Couture named Delphine Arnault, Bernard Arnault’s oldest daughter as President and CEO. She will replace Pietro Beccari. Beccari is set to succeed Michael Burke as CEO of Louis Vuitton, LVMH’s largest brand. Oh yes, he will continue to work for Louis Vuitton and as an advisor to Bernard Arnault. The changes show the strength of the executives in this company and their ability to grow further.

On the other hand, we read that Katrina Lake is back as interim CEO at Stich Fix, 17 months after stepping down. She is the founder and one of the youngest CEOs.

Rite Aid
RAD
Corp. named Elizabeth “Busy” Burr interim CEO follows Hayward Donigan’s departure. Of course, they are also looking for a permanent CEO.

In 2023 Adidas, Under Armour, Calvin Klein, Puma and Designer Brands are also expecting new CEO’s. It will be interesting to see what innovative steps they will be taking.

POSTSCRIPT: The many changes described above will change the momentum of some companies. It is our duty to wish the new CEO well and hope they create new excitement as well as being innovative. Success will add momentum to the industry. The retail industry requires excitement and creativity.