What was changed
Kohl's had slipped: sales were flat, margins were thin and the stock had been cut in half. Macellum Advisors and other investors argued the board was too complacent and the strategy was only there for a sale.
In April 2021 Kohl's settled with the activist group, avoiding a proxy fight by adding three new independent directors, including former Burlington Stores CEO Tom Kingsbury.
Kingsbury became interim CEO in late 2022 and permanent CEO in February 2023. He brought a cost discipline playbook and a focus on the core; Kohl's guided to about 4% operating margin for 2023.
The result was a narrower, tighter Kohl's that stopped chasing growth it could not execute.
What it achieved
Kohl's put three new directors on the board in 2021, then named Tom Kingsbury permanent CEO in 2023, setting an ~4% operating margin target.
Why it worked
Kohl's board had grown insular and resistant to challenge.
A settlement brought in operators with turnaround experience.
Kingsbury had run a discount retailer and knew cost discipline.
A realistic margin target replaced years of over-promising.
What can be applied
Sometimes the value of an activist campaign is not the tactic but the people it forces into the room; a board reset can change who runs the train.
Aftermath
Kohl's kept its independence but ran under the operator-led playbook the activists had demanded. Sales stayed under pressure from a weak apparel market, but the company's cost structure and margin targets became more disciplined.
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